City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council and Agency Board receive an overview
presentation on the Fiscal Year 2009/2010 Preliminary Year End Report.
DISCUSSION:
The numbers contained in the attached reports are the unaudited, preliminary year-
end totals for Fiscal Year 2009/2010. The revenue and expenditure totals will be
finalized when the City’s auditors complete their review of the City’s financial
statements. It should be noted that the audit work has been substantially completed,
and we do not expect material differences from the results presented in this report.
General Fund
The General Fund ended the fiscal year with revenue totaling $81.011 million and
expenditures of $82.639 million, a net budget deficit exceeding $1.6 million.
However, the Fiscal Year 2009/2010 revenues include one-time funding from the
Equipment Replacement and Innovation Funds totaling $1.8 million, as well as
proceeds of $0.395 million from the sale of property, so the actual operating budget
deficit was over $3.8 million.
The General Fund’s largest source of revenue is sales tax, which has declined
dramatically over the last two years. Sales tax receipts totaled $14,314,155, which is
over 20% lower than the receipts in Fiscal Year 2007/2008. Even the addition of new
Meeting Date: 11/08/10 Item Number: J-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Fiscal Year 2009-2010 Preliminary Year End Review.
Contact Person/Dept.: Jeff Muir, CFO Phone Number: 310.253.6016
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Meetings and Agendas – City Council (11/03/10); Meetings and
Agendas – Redevelopment Agency (11/03/10)
Department Approval:
Jeff Muir (11/03/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/03/10)
Agency General Counsel Approval:
Murray Kane (by H. Baker) (11/03/10)
Fiscal Impact Review:
Jeff Muir (11/03/10)
City Manager/Executive Director
Approval:
John M. Nachbar (11/03/10) City of Culver City, California
Agenda Item Report
stores to the remodeled Westfield Culver City has not generated enough sales to fully
offset lower consumer spending and the loss of major sale tax generators. Another
area that has declined dramatically is building and development related fees and
taxes. For example, in Fiscal Year 2007/2008 Commercial Industrial Development
Tax revenue reached $2.1 million, but in Fiscal Year 2009/2010 revenue dropped to
$0.191 million. On a brighter note, property tax receipts increased 7%|1010| from Fiscal
Year 2008/2009 and transient occupancy taxes remained steady, showing a slight
increase.
General Fund expenditures ended the year lower than each of the last two fiscal
years. This is a direct result of the hiring freeze (non-public safety) and a reduction of
nonessential operations and maintenance expenditures. Compared to Fiscal Year
2008/2009, personnel expenditures increased 0.5%, operations and maintenance
expenses decreased 1.2%, and transfers to other funds declined 68%. The decline in
transfers to other funds is wholly attributable to the low level of funding for capital
projects. Historically, the General Fund has transferred approximately $1.0 million to
fund capital projects, but in an effort to reduce the budget deficit, the General Fund
only transferred $0.205 million during Fiscal Year 2009/2010.
Enterprise Funds
The Refuse Fund ended the year with an operating surplus for the second
consecutive year. Preliminary year-end Refuse Fund revenues are $11.18 million,
and preliminary year-end expenditures are $10.5 million (not including depreciation
expense).
Preliminary year-end 2009/2010 revenues for the Transportation Fund are $15.3
million and expenditures totaled $16.7 million. The Transportation Department’s
budget included appropriations of over $10 million for new buses, but this expenditure
did not occur in 2009/2010, and funding has been carried over to Fiscal Year
2010/2011.
Preliminary results show Sewer Fund operating revenues at $9.9 million which is
3.6% higher than the prior year. Sewer operating expenses totaled $6,708,119.
Operating expenses were lower than revenue due to lower than expected bills from
the City of Los Angeles for use of the Hyperion wastewater treatment plant.
|1010| The 7% increase is due to a 2% increase in Assessed Values plus additional non-assessment roll revenues, such as
escape assessments, unitary taxes, supplemental revenues, redemption payments, penalties and refunds. Non-assessment
roll revenues may vary greatly from year to year. City of Culver City, California
Agenda Item Report
Redevelopment Agency
The RDA finished Fiscal Year 2009/2010 with a surplus as revenues exceeded
expenditures by approximately $2.6 million. Although tax increment revenues
decreased slightly (about 2% lower in Fiscal Year 2009/2010 than in Fiscal Year
2008/2009), strong revenues from other sources, such as Pacific Theaters and RDA
controlled parking offset that decrease. Overall, revenues increased by approx. 2%
from Fiscal Year 2008/2009.
Expenditures increased by approximately 7% in Fiscal Year 2009/10. Although
expenditures increased from Fiscal Year 2008/2009, they were still less than
revenues due primarily to the impact the economy is having on development in the
City. There are a number of projects that have been on hold for the last few years,
keeping RDA expenditures relatively low. It is also important to note that the required
$11 million SERAF payment was borrowed from the Low/Moderate Income Housing
Fund. RDA expenditures are expected to increase over the next few years as
development picks up and the ERAF/SERAF loans are repaid to the Low/Moderate
Income Housing Fund.
Analysis of other funds is included within the attached reports.
ATTACHMENTS:
1. Fiscal 2009-2010 Preliminary Year End Report
2. Fiscal 2009-2010 Preliminary Year End City Budget Monitoring Report
3. Fiscal 2009-2010 Preliminary Year End RDA Monitoring Report
MOTION:
That the City Council and Agency Board:
Receive a presentation from the Chief Financial Officer on the Fiscal Year 2009-
2010 Preliminary Year End Review.
MEETING DATE: November 8, 2010
AGENDA ITEM : Preliminary Year End Financial Reports
ATTACHMENTS
Pages
1. Fiscal 2009-2010 Preliminary Year End Report 1-28
2. Fiscal 2009-2010 Preliminary Year End City Budget 29-46
Monitoring Report
3. Fiscal 2009-2010 Preliminary Year End RDA Monitoring Report 47-59
City of Culver City
PRELIMINARY YEAR-END REPORT
FOR
FISCAL YEAR 2009-10 |1010|ATTACHMENT 1
|1010|ATTACHMENT 1
CITY OF CULVER CITY
PRELIMINARY 2009-10 YEAR-END REPORT
Table of Contents
Introduction ........................................................................................................... 1
Revenues Summary ............................................................................................ 1
Revenue Detail.................................................................................................... 2
Property Tax ............................................................................................... 2
Sales Tax ................................................................................................... 2
Public Safety Augmentation Fund Tax (PSAF) ........................................... 2
Utility Users Tax (UUT)............................................................................... 3
Business License Tax .............................................................................. 4
Franchise Tax ............................................................................................. 4
Transient Occupancy Tax (TOT) .............................................................. 4
Real Property Transfer Tax ...................................................................... 4
Commercial Industrial Development Tax .................................................. 4
Intergovernmental Revenue ....................................................................... 5
Charges for Services ................................................................................ 5
Fines & Forfeitures ..................................................................................... 6
Use of Property & Money ........................................................................... 6
Licenses & Permits ..................................................................................... 6
Interfund/Departmental ............................................................................... 7
Other Revenues ......................................................................................... 7
Other (Interfund Transfers) ......................................................................... 7
Enterprise Revenues ............................................................................................. 8
Refuse Fund ............................................................................................... 8
Transit Fund ............................................................................................... 8
Sewer Fund .............................................................................................. 9
Expenditures Summary ......................................................................................... 8
Expenditure Detail ................................................................................................. 9
Departments/Divisions Exceeding Spending Assumption ........................ 9
Departments/Divisions Below Spending Assumption ............................... 10
Internal Services Funds Summary .................................................................... 12
Enterprise Funds Summary .............................................................................. 13
Additional Cost Pressure for the City ................................................................ 15
Five-Year Projection .......................................................................................... 21
Conclusion ........................................................................................................ 24 |1010|ATTACHMENT 1
1
CITY OF CULVER CITY
2009-10 Budget Monitoring Report
Preliminary Year-End Report
General Fund and Other City Funds
INTRODUCTION
Preliminary year-end results for the City are slightly better than expected, but still not as
encouraging as hoped. For the second consecutive year the City’s General Fund will end the year
with an operating deficit. Further adjustments will be made in preparation of the closing of the
books, but these adjustments will not close the current gap between revenues and expenditures.
General Fund preliminary year-end revenues are $81.011 million, or 99.75% of adjusted
budgeted projections. General Fund preliminary year-end expenditures are $82.639 million. The
current gap between revenues and expenditures is approximately $1.628 million (deficit).
However, this amount takes into account the transfer of one-time funding from the Equipment
Replacement fund ($1.25 million), the Innovation Fund ($550,000) and the sale of the Metro Spur
($395,000). If these amounts were not received, the deficit would have totaled approximately
$3.82 million. General Fund preliminary expenditures came in slightly above the 96.0% target, at
97.1%.
The Refuse Fund ended the year with an operating surplus for the second consecutive year.
Preliminary year-end Refuse Fund revenues are $11.18 million, and preliminary year-end
expenditures are $10.5 million (not including depreciation expense).
Other Funds performed close to expectations, and will be discussed further in the report.
Fiscal 2009-10 saw a continuation of some of the worst economic crises in decades, and as
mentioned in several other reports, it is not expected to get better during fiscal 2010-11. It will
most likely be many years before the economy performs at the levels seen over the last couple of
years.
REVENUES SUMMARY
General Fund Revenue Overview
Preliminary year-end General Fund revenues are $81,011,900, or 99.75% of adjusted
budget projections. Sales Tax came in below the third-quarter adjusted projection, and
other categories also missed the mark. A few of the categories that did hit or exceed their
projections, such as Transient Occupancy Tax and Real Property Tax, were not enough to
make up for the losses of other revenue categories. This amount also includes one-time
payments from the Equipment Replacement Fund ($1.25 million), and the Innovation Fund
($550,000).
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2
In April, the City Council approved adjustments to the budget which adjusted revenue
estimates down by approximately $1.8 million. Without these adjustments, receipts would
have been 98.0% of original projections.
Sales Tax receipts came in approximately $250,000 or 1.7% less than the third-quarter
adjusted figures. We received approximately eight months of increased receipts from the
renovation of Westfield, which brought in several new stores. The economy also leveled
slightly during the spring of 2010, which was a welcome relief from the steep dive it was in
the prior couple of years. It has certainly not recovered, but the economy does seem to be
stabilizing.
Revenue Detail
Property Tax - The adjusted budget for Property Tax for fiscal 2009-10 was $3.4 million.
Preliminary year-end results show this revenue coming in at $3.53 million. It is anticipated
that this revenue category will stay relatively flat for the next couple of years. The pass-
through payments totaled approximately $470,000 for the year.
The fiscal 2010-11 projection for Property Tax is $3.47 million, and is approximately 1.7%
higher than the fiscal 2009-10 adjusted budget. After reviewing current trends and
economic activity, it was determined that this projection should stand, even with the slightly
higher than anticipated preliminary 2009-10 receipts.
Sales Tax - The fiscal 2009-10 adjusted budget projection for Sales Tax was $14.563
million. The preliminary year-end receipts are $14.314 million. This is a drop of $3.6 million
from fiscal 2007-08 ($17.92 million) and a drop of $1.7 million from fiscal 2008-09 ($16.004
million). The low receipts are a direct result of the economy, loss of businesses, and
changes in consumer spending. The renovations to Westfield Shopping Mall, which
officially re-opened in October 2009, assisted in keeping receipts from falling even lower. A
new Target and Best Buy helped supplement the receipts, and also helped make-up for the
losses of Circuit City, Hooman Automotive, Karl Storz Endoscopy, and other businesses.
The first three quarters of the year saw extremely poor auto sales, but the last quarter saw
some encouraging increases in this category, most notably from individuals taking
advantage of the generous financing deals. Holiday sales were relatively steady.
Sales Tax projections for fiscal 2010-11 show a slight increase and are attributable to
anticipation of a full year of receipts from Westfield Shopping Mall. Retail sales are
expected to continue to stay low through the first portion of the year, with a leveling out and
slight recovery during early 2011 and into 2011-12.
Public Safety Augmentation Fund (PSAF) - This funding source was implemented by
Prop 172 in 1993, and is to be used to fund public safety services. It is an allocation of
0.5% of the sales tax rate, and is allocated by the State – same as sales tax – to counties
and cities. Since it is based on taxable sales, it mimics sales tax receipts. Fiscal 2009-10
adjusted budget projections for PSAF are $298,000. Preliminary Year-end receipts are
$309,396, which is the lowest this category has seen since fiscal 2003-04.
Fiscal 2010-11 interim projections for this category were kept relatively similar at $310,000. |1010|ATTACHMENT 1
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Utility Users Tax - Utility Users Tax (UUT) is a tax placed on electricity, natural gas, water,
telecommunications (land-line and wireless), and cable television. Culver City’s current rate
is 11%. Total fiscal 2009-10 adjusted budget projections for UUT were $14.39 million.
Preliminary year-end receipts are $14.143 million, or approximately 98.3% of projections.
Discussion of the fiscal 2009-10 performance of each UUT category is provided below.
o Electricity – The adjusted fiscal 2009-10 budget projection for Electricity UUT is
$6.2 million. This amount was reduced from the original adopted budget of
$6.407 million. Ending preliminary receipts for this category are $5.775 million,
which is approximately 93% of budgeted projections. This is the lowest reported
Electricity UUT amount since fiscal 2005-06. Although mild weather has
contributed to the low amount, further analysis will be performed to find any
other causes.
The fiscal 2010-11 projection for Electricity UUT is $6.25 million. Staff will be
monitoring this category closely and may recommend an adjustment at mid-
year.
o Natural Gas – The fiscal 2009-10 adjusted projection for Natural Gas UUT is
$1.14 million. The milder weather kept receipts relatively lower than anticipated
along with reduced natural gas prices. Preliminary year-end receipts for the
natural gas UUT category are $1.023 million, or approximately 89.7% of
projections.
Fiscal 2010-11 projections for this category are $1.2 million.
o Water – The fiscal 2009-10 adjusted budget projection for water UUT is $1.068
million. Although reports continue to show a water shortage, usage remains
rather steady, and preliminary year-end receipts show water UUT ending the
year at roughly $1.061 million or approximately 99.3% of adjusted projections.
Fiscal 2010-11 interim projections for water UUT are $1.105 million, and take
into account a conservative increase.
o Telecommunications – The adjusted fiscal 2009-10 budget projection for
telecommunications UUT is $5.301 million. This projection was clearly a bit
pessimistic, and preliminary year-end results show this category at
approximately $5.61 million. It is thought, though, that this amount may not be
sustainable at this level as calling plans become more inexpensive and more
users start migrating to VOIP and bundled services. Staff will be keeping a
close eye on this moving forward.
Projections for fiscal 2010-11 for Telecommunications UUT are $5.5 million.
o Cable Television – The budget projection for fiscal 2009-10 is $681,000 for Cable
TV UUT. This category has remained relatively steady, and preliminary year-end
receipts are $673,100.
Fiscal 2010-11 projections are $720,000 for Cable UUT. |1010|ATTACHMENT 1
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Business License - Business License is a tax placed on “for profit” businesses conducting
business within Culver City. Most services are taxed at $1 per $1,000 of gross receipts.
Consulting and most professional services are taxed at a rate of $3 per $1,000 of gross
receipts. The fiscal 2009-10 budget projection for Business License is $9.541 million. This
amount also includes the Business License Certificate fee revenue. Preliminary year-end
receipts indicate this category will slightly surpass budget projections, and are currently
shown at $9.653 million. A second year of high penalty receipts has assisted in this
category surpassing its goal. Staff believes this is attributable to cash-flow issues created
by the economic conditions businesses are facing.
Funding was approved in fiscal 2008-09 for a Business License Tax audit. Work was
initiated on this project and it is expected to be finalized during fiscal 2010-11. Fiscal 2010-
11 interim projections are $9.827 million.
Franchise Tax - Franchise Tax receipts have remained relatively steady with slight growth
over the years. The fiscal 2009-10 budget projection for this category is $1.33 million.
Preliminary year-end receipts show the category at $1.278 million.
Fiscal 2010-11 projections for Franchise Tax are $1.4 million.
Transient Occupancy Tax - Transient Occupancy Tax (TOT) receipts have remained
steady even with the slow economy. The fiscal 2009-10 budget projections are $2.837
million. Even with high vacancy rates and low room rates, preliminary year end receipts for
TOT are $2.963 million. This is also due to all of the larger hotels in the City being open
with no construction, as had been the case in the prior fiscal year.
Fiscal 2010-11 interim projections are $2.85 million.
Real Property Transfer Tax - This category is dependent on property sales – both
residential and commercial. Commercial property sales brings in the higher receipts, but the
number of property sales in fiscal 2008-09 and 2009-10 were lower than in the prior few
years. Adopted projections for this category were $1.5 million. It was clear at mid-year that
this projection was too high and was adjusted to $750,000. At the third-quarter review it
was anticipated that this category would still fall short, but during April through June there
were some larger than expected real estate sales which boosted this category to end the
year at $1.002 million.
Fiscal 2010-11 projections for this revenue are $750,000. This category is starting off
strong and should hit projections.
Commercial Industrial Development Tax - This is a revenue category that fluctuates
greatly from year to year. The last few fiscal years have seen high receipts, mostly due to
major development occurring in the city. With the collapse of the financial markets,
development activity basically came to a halt in fiscal 2008-09 and 2009-10. The adopted
budget projection for fiscal 2008-09 was $1.18 million, and was based on anticipated new
development that was expected to begin in that fiscal year. It was clear at the mid-year
review that most of the developments were not going to occur and would be pushed out a
year or two. Fiscal 2008-09 mid-year adjustments to this category brought the budget |1010|ATTACHMENT 1
5
projection to $880,000. This was clearly still too optimistic, and year-end results were
$591,000, approximately 67% of adjusted budget projections.
Fiscal 2009-10 saw even worse results. It was originally thought that one new development
would be moving forward, but it quickly became apparent after the budget was adopted that
this would not be the case. Adopted budget projections were $985,000 and were adjusted
to $300,000 at the third-quarter review. Preliminary year-end receipts show this category
still missing the mark and end at $191,695 for fiscal 2009-10.
The budget projection for fiscal 2010-11 is being slightly optimistic and shows it at
$400,000. Staff is monitoring this category closely and could recommend an adjustment at
mid-year.
Intergovernmental Revenue - State Motor Vehicle License Fee (VLF) In-Lieu is the
primary revenue in this category. VLF In-Lieu is paid to municipalities to make up for lost
local revenue when the VLF rates were reduced from 2% to 0.65% in 2004. The budgeted
amount for 2009-10 was $3,211,860 and was adjusted to $3,326,976 at the third-quarter
review. This revenue is received twice a year, in January and May. Since the January
amount had been received it was simple to calculate what the year-end balance would be.
A smaller portion of the Intergovernmental revenue is the VLF administrative revenue.
Unfortunately, rising DMV administrative costs have eaten into this revenue source. Due to
these rising administrative costs, the budget projection was reduced from $197,000 to
$65,000 during the third-quarter budget review. However, larger than expected payments in
the last months of the fiscal year enabled this revenue to end the year at approximately
$119,871.
Charges for Services - Charges for Services preliminary year-end revenue is 100.9% of
the budgeted projections. Charges for Services is comprised of many revenue categories
that range from building related permits and plan checks to recreation fees and ambulance
fees. The largest revenue sources are ambulance fees, and plans check fees for
Engineering, Building Safety, and Fire Prevention. (RDA Billing, which is also a component
of this category, is not included in this calculation.)
o Ambulance Fees - Revenue was higher than anticipated primarily due to
increases to the billing rates and increased collection activity. Rates, which are
set by Los Angeles County, were recently increased 6%. Fiscal year 2009-10
preliminary year-end revenue totaled $1.312 million, which is approximately
25.9% higher than budget projections. Compared to the previous fiscal year,
preliminary revenues are 27.2% higher.
Fiscal 2010-11 interim projections for this category are $950,000.
o Auditorium & Room Rentals – The four areas of the Parks, Recreation, &
Community Services complex that are rented out are the Veteran’s Memorial
Auditorium, Veteran’s Memorial meeting rooms, the Teen Center, and the
Senior Center. For fiscal year 2009-10, the total adjusted budgeted revenue
was $665,000 and the preliminary revenue received was $635,000. Receipts
are 15.6% higher than fiscal 2008-09, but were 14% lower than fiscal 2007-08. |1010|ATTACHMENT 1
6
The lower receipts are directly attributable to the economy, which lead to a
dramatic decline in the demand for rentals. The fee structure for rentals is
currently being revised in an effort to simplify the fee structure and make it more
equitable.
The 2010-11 projection for the Veterans Complex is $715,000.
o Plan Check Fees - The fiscal 2009-10 adjusted budget totaled $1,073,000, and
preliminary revenue is $964,362. Plan Check Fees were affected by the
economic downturn, but the revenue was bolstered by the Westfield Mall
remodel and the construction at Sony.
Fiscal 2010-11 projections are $1,094,000. Some fees from new development
activity are expected in fiscal 2010-11, which has initiated the increased
projection from fiscal 2009-10.
o Public Safety Related Fees - These revenues are made up of records requests,
live scan fingerprints, vehicle impounds, and other miscellaneous fees. These
revenues ended the fiscal year at 118% of the budget. These fees are expected
to remain relatively steady in fiscal year 2010-11.
o Recreation Fees – Recreation fees are charged for various services which
range from adult sports leagues to day camps for children. The total revenue
budget for recreation fees was $1,769,891 and the total preliminary revenue
receipts for fiscal year 2009-10 were $1,613,089. Increases in Enrichment
Classes receipts were lower than anticipated.
Fines & Forfeitures - Fines & Forfeitures is made up of moving violations, which includes
red-light camera violations and parking violations. The preliminary year-end revenues look
to end the year at just slightly over budgeted projections. The adjusted budget projections
were $4.306 million, and receipts were $4.331 million
Budget projections for fiscal 2010-11 are forecast at $4.034 million. This amount is will be
reviewed at mid-year to see if any adjustments are recommended to be made.
Use of Money & Property - The primary revenue in Use of Money & Property is the interest
earned on investments. Preliminary receipts show this category at $1.4 million. Included in
this amount is the interest payment from the RDA for the remainder of the $9 million loan.
Licenses & Permits - The majority of the revenue in Licenses & Permits category is
derived from construction activity. Budgeted projections for this category for fiscal 2009-10
are $2.22 million. Preliminary year-end revenues for Licenses & Permits are at 96.9% of the
adjusted budget, or $2.152 million. Building Permits, Electric Permits, Plumbing & Heating
Permits, and Residential Building Records all held relatively steady with projections. Filming
permits also came in significantly ahead of projections, which helped fill in for some of the
other underperforming categories. Outdoor Dining Permits fell short due to the timing of
billing, but receipts will be received in fiscal 2010-11.
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Expectations continue to be that construction activity will remain anemic for this next year,
so most of these revenues will remain depressed until an economic recovery begins. For
fiscal year 2010-11, the total Licenses & Permits budget is projected to be $2,223,066,
which is less than half a percent increase from fiscal 2009-10.
Interfund/Departmental - Interfund/Departmental revenues, also known as Administrative
Cost Allocation, are reimbursed costs which are incurred by the General Fund for other
funds. The Refuse Fund, Sewer Fund, Transportation Fund, and Redevelopment Agency
are among the funds that are charged administrative costs. The preliminary year-end total
for 2009-10 Interfund/Departmental was $5,288,611 and this revenue was fully collected.
For fiscal year 2010-11 the budget is $4,803,290. The drop from fiscal 2009-10 is due to
reduced services for Transportation.
Other Revenues - The adjusted budget for Other Revenues was $797,918 and the
preliminary year-end revenue for this category is $572,207. A good portion of this revenue
was received from Land Sale Proceeds ($395,000) from the Redevelopment Agency to
purchase the Metro Spur (Wesley property) from the City.
Other (Interfund Transfers) - Revenue for Other (Interfund Transfers) is expected to end
the fiscal year at 99.8% of the adjusted budget. The preliminary year-end revenue is
$4,131,458. The largest transfer is in the amount of $1,380,000 from the Parking
Improvement Fund. The other large one-time transfers include $1.25 million from the
Equipment Replacement Fund and $550,000 from the Innovation Fund. Other transfers are
from funds including the Refuse Fund, Sewer Fund, Transportation Fund, and Gas Tax
Fund.
The interim budget projection for fiscal year 2010-11 is $3,026,290. This projection includes
one-time transfers from the Innovation Fund ($68,000) and the Equipment Replacement
Fund ($750,000).
The table below shows the adopted budget, mid-year adjusted budget, preliminary year-end
receipts and percentage of receipts for General Fund revenues for fiscal 2008-09.
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ATTACHMENT 1
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FISCAL YEAR 2009-10
PRELIMINARY YEAR-END GENERAL FUND REVENUES
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
RECEIPTS
AS OF 6/30/10
% RECEIVED
AS OF
6/30/10
Property Tax $3,685,000 $3,900,000 $3,994,987 102.4%
Sales Tax $16,165,140 $14,563,110 $14,314,156 98.3%
Public Safety Sales Tax $360,000 $298,000 $309,396 103.8%
Business Tax $9,541,000 $9,541,000 $9,653,598 101.2%
Franchise Tax $1,330,000 $1,330,000 $1,278,427 96.1%
Real Property Trans Tax $1,500,000 $750,000 $1,001,943 133.6%
Utility Taxes $14,637,000 $14,390,000 $14,142,798 98.3%
Transient Occupancy Tax (TOT) $2,746,450 $2,837,000 $2,967,131 104.6%
Commercial/Industrial Development Tax $985,000 $300,000 $191,695 63.9%
Licenses And Permits $1,816,790 $2,220,930 $2,176,610 98.0%
Intergovernmental $3,453,380 $3,542,421 $3,587,844 101.3%
Charges For Services (Includes RDA Billing) $10,212,115 $13,528,580 $11,669,335 86.3%
Fines and Forfeits $4,057,000 $4,306,010 $4,330,870 100.6%
Use of Money & Property $1,039,000 $984,000 $1,400,835 142.4%
Interfund/Departmental (Admin Allocation) $6,689,009 $3,785,319 $5,288,611 139.7%
Other Revenues $474,169 $797,918 $572,207 71.7%
Other (Interfund Transfers) $3,995,300 $4,138,044 $4,131,458 99.8%
TOTAL GENERAL FUND $82,686,353 $81,212,332 $81,011,901 99.8%
ENTERPRISE REVENUES
Refuse Fund
Preliminary year-end revenue for the Refuse Fund is $11,176,527 or 96.1% of the Adjusted
Budget. Total revenue is 2.0 % higher than fiscal year 2008-09. Residential Refuse
Disposal slightly surpassed projections by 4%. Results also show that Sales of Recycle
Items were above projections at $267,706 or 112.2% of the budget. Revenue categories
which didn’t meet the budget projection were Trash Tonnage Charges, which was over 25%
lower than projections and 10% lower than fiscal 2008-09, and Bin Service, Drop Box
Service, and Bin Rental Charges.
Transit Fund
The Transportation Fund revenues continued to experience many different levels of change
during fiscal 2009-10. Preliminary year-end 2009-10 revenues for the Transportation Fund
were $15.272 million. Budget projections for fiscal 2009-10 were $29.183 million. FTA
capital related revenues came in much lower than expected. A large portion of these funds
are for the purchase of new buses, which will occur in fiscal 2010-11, and the revenues will
also be received in this fiscal year.
Preliminary farebox receipts came in under the budget target of $3.52 million, and are
showing as $2.62 million, or 74.5% of projections. A rate increase was implemented during
fiscal 2009-10, which brought receipts down at the beginning of the fiscal year. Preliminary
results for Prop A Discretionary funding surpassed the target by over 7%. Preliminary Prop
C year-end receipts met budget projections.
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ATTACHMENT 1
9
Sewer Fund
Preliminary results show sewer operating revenues at $9,903,908 or 110.0% of budgeted
projections. Sewer Operating Fees, which are billed on property taxes, comprise 88% of the
fund’s operating revenues. Compared to fiscal 2008-09, revenues were 3.6% higher. This
can be primarily attributed to Sewer Facility Charges from the Westfield Shopping Mall
renovation.
EXPENDITURES SUMMARY
General Fund Expenditure Overview
Overall, preliminary General Fund expenditures are $82,639,000, or 97.1% of
appropriations, which is over the 96.0% spending target. Salary savings assisted in keeping
the percentage low, but reductions in budget amounts in various O & M categories pushed
up the percentage. Several individuals also took the retirement incentive in fiscal 2009-10,
and accrual payoffs were slightly higher than what was budgeted.
For the most part, departments successfully adhered to the 96.0% spending assumption.
Only the Fire Department (97.1%) exceeded 96.0% assumption. This was primarily due to
increases in Constant Staffing.
The City Council (78.1%), City Clerk (79.1%), Information Technology (87.8%), Parks,
Recreation & Community Services (84.1%), Human Resources (86.3%) and
Community Development (87.2%) were all below the 96.5% spending assumption (i.e.
more than 8% below the target). All of these Departments, except for City Council, had
vacancies that resulted in the significant savings.
All other General Fund Departments were within a normal expenditure range, i.e. less than
96.0% but more than 88.0% of its adjusted budget expended.
Expenditure Detail
Departments/Divisions Exceeding the Spending Assumption:
The Fire Department (97.8%) exceeded the 96.0% spending assumption.
o The overage in the Fire Department is due primarily to personnel costs
(constant staffing) that were expended during the year, especially at the
beginning of the fiscal year.
Additionally, nine (9) General Fund divisions exceeded the 96.0% target (excluding
recreation programs that primarily consist of part-time salaries for seasonal programs).
Although these divisions exceed their expenditure targets, each respective department,
except for the department described above, is below the 96.0% budget target.
o Office of the Police Chief expended 100.1% of its adjusted budget. This is
due primarily to full staffing (i.e. there were no vacancies throughout the year)
higher than budgeted bi-weekly payoffs for accrued vacation and sick leave, and
overtime expenses which had no matching budget amount. Since the Office of
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the Police Chief budgets only for personnel costs in the Chief’s Office, there is
no O&M budget to offset the lack of vacancies and bi-weekly payoffs.
o Police Communications expended 104.0% of its adjusted budget. The major
factor is expending of overtime in excess of vacancy savings ($106,000 over
budget.
NOTE: Overall, the Police Department expended 93.5%, or 2.5% below the 96.0%
spending assumption. There were several vacancies that attributed to this savings.
o Fire Suppression expended 108.0% of its adjusted budget. The major factor
was the expenditure in constant staffing during the fall of 2009. There is also
some crossover in personnel expenses between the Fire Suppression division
and the EMS division. The EMS division is well under the target (83.2%), which
offsets some of the increased costs in Fire Suppression.
o Fire Prevention expended 101% of their adjusted budget. The majority of the
overage was due to accrual payoffs for a retiree.
NOTE: Overall, the Fire Department expended 97.8%, or 1.8% above the 96.0%
spending assumption.
o Community Development Administration expended 96.6% of its adjusted
budget. This is due primarily to full staffing (i.e. there were no vacancies
throughout the year) and virtually no O&M budget in the Division to offset the
lack of vacancies.
NOTE: Overall, the Community Development Department expended 87.2% of the
adjusted 2009-10 budget.
o Public Works Administration expended 102.4% of its adjusted budget. This is
attributable to overtime not budgeted for, higher than budgeted bi-weekly
payoffs, and full staffing (i.e. there were no vacancies throughout the year).
o Maintenance Operations expended 96.6% of its adjusted budget. This is due
primarily to full staffing (i.e. there were no vacancies throughout the year).
o Building Maintenance expended 98.5% of its adjusted budget. This is due
primarily to use of overtime, which exceeded the budget by about $33,800.
o Parking Meter Maintenance expended 101.6% of its adjusted budget. This is
due primarily to full staffing (i.e. there were no vacancies throughout the year),
and full use of O & M appropriations.
NOTE: Overall, the Public Works Department expended 94.0%, or 2.0% below the
96.0% spending assumption.
Departments Significantly Below the Spending Assumption:
The City Council (78.1%), City Clerk (79.1%), Information Technology (87.8%), Parks,
Recreation and Community Services (84.1%), Human Resources (86.3%), and
Community Development (87.2%) were all significantly below the 96.0% spending
assumption (i.e. more than 8% below the target).
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o City Council savings are due to lower than anticipated expenditures in Audit
Services and Other Contractual Services. Some of these funds have been
encumbered and carried-over to fiscal 2010-11.
o City Clerk savings were due primarily to a vacancy and lower than anticipated
election costs.
o Information Technology savings were due primarily to vacancies and lower
than anticipated repair and maintenance costs.
o Parks, Recreation, and Community Services savings were due primarily to
vacancies.
o Human Resources savings was primarily due to a vacancy.
o Community Development savings were due in part to vacancies in several
Divisions, and the non-expenditure and subsequent encumbrance carryover of
Other Contractual Services funds for expenses related to PXP in the Planning
Division. These expenditures will occur in fiscal 2010-11.
All other General Fund Departments were within a normal expenditure range, i.e. less than 96.0%
but more than 88.0% of its adjusted budget.
FISCAL YEAR 2009-10
PRELIMINARY YEAR-END GENERAL FUND EXPENDITURES
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
EXPENSES
AS OF 6/30/10
% EXPENDED
AS OF 6/30/10
GENERAL GOVERNMENT
CITY COUNCIL/CITY MANAGER $1,556,692 $1,616,135 $1,495,887 92.6%
CITY CLERK $562,079 $564,207 $446,151 79.1%
CITY ATTORNEY $1,912,650 $2,893,653 $2,641,932 91.3%
FINANCE $4,653,955 $4,891,767 $4,403,199 90.0%
Finance Admin & Budget $1,256,055 $1,322,173 $1,186,353 89.7%
General Accounting $621,704 $621,704 $542,639 87.3%
Accounting Operations $979,853 $1,057,982 $950,505 89.8%
Treasury $1,183,341 $1,248,771 $1,114,860 89.3%
Purchasing $613,002 $641,137 $608,842 95.0%
HUMAN RESOURCES $1,167,961 $1,214,414 $1,047,757 86.3%
INFORMATION TECH. $3,364,099 $3,580,086 $3,142,597 87.8%
Total General Government $13,217,436 $14,760,262 $13,177,523 89.3%
PARKS, REC. & COMMUNITY SVCS
PRCS Admin $835,656 $850,590 $644,518 75.8%
Cultural Affairs $475,451 $481,103 $416,910 86.7%
Recreation $963,266 $963,266 $854,189 88.7%
Parks and Playgrounds $232,377 $232,377 $231,555 99.6%
Camp Programs $203,353 $205,191 $184,602 90.0%
Pool and Aquatics $374,428 $382,363 $387,084 101.2%
Culver City Afterschool Programs $191,420 $193,312 $176,882 91.5%
Sports Programs $193,334 $201,684 $183,411 90.9%
Rec and Enrichment Programs $395,564 $531,072 $477,725 90.0%
Youth Center $87,427 $87,427 $87,569 100.2%
Youth Mentoring $11,682 $11,682 $12,916 110.6%
Community Events & Excursions $25,949 $26,949 $25,641 95.1%
Fiesta La Ballona $152,000 $155,789 $47,920 30.8%
Parks Division $2,481,947 $2,519,167 $2,217,134 88.0%
Senior and Social Svcs $615,578 $806,369 $484,268 60.1%
Total PR&CS $7,239,432 $7,648,341 $6,432,324 84.1%
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FISCAL YEAR 2009-10
PRELIMINARY YEAR-END GENERAL FUND EXPENDITURES (cont’d)
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
EXPENSES
AS OF 6/30/10
% EXPENDED
AS OF 6/30/10
POLICE DEPARTMENT
Office of the Chief $707,824 $707,824 $708,348 100.1%
Operating Bureaus $27,268,921 $27,705,949 $25,772,311 93.0%
Communications $1,450,036 $1,469,470 $1,528,471 104.0%
Animal Control $206,001 $214,858 $143,701 66.9%
Total Police Department $29,632,782.0 $30,098,101.0 $28,152,831.0 93.5%
FIRE DEPARTMENT
Office of the Chief $887,684 $1,026,840 $906,344 88.3%
Fire Suppression $7,874,472 $8,002,118 $8,645,866 108.0%
Emergency Medical Svcs $4,680,209 $4,692,902 $3,902,621 83.2%
Emergency Preparedness $197,355 $199,955 $184,495 92.3%
Fire Prevention $1,148,733 $1,223,540 $1,235,863 101.0%
Communications $682,751 $710,847 $626,859 88.2%
Total Fire Department $15,471,204 $15,856,202 $15,502,048 97.8%
COMMUNITY DEVELOPMENT
Comm Dev Admin $695,348 $704,098 $680,123 96.6%
Building Safety $1,345,565 $1,403,718 $1,344,100 95.8%
Planning $1,331,220 $1,551,712 $1,207,609 77.8%
Enforcement Services $712,579 $726,821 $598,327 82.3%
Redevelopment $1,987,888 $1,987,888 $1,807,079 90.9%
Neighborhood Preservation $1,478,841 $1,524,051 $1,251,380 82.1%
Total Community Development $7,551,441 $7,898,288 $6,888,618 87.2%
PUBLIC WORKS
Public Works Admin $614,223 $614,223 $629,124 102.4%
Engineering $1,744,868 $1,804,953 $1,653,433 91.6%
Maintenance Ops $348,456 $415,210 $401,144 96.6%
Streets $2,457,016 $2,462,157 $2,288,695 93.0%
Tree Maintenance $1,106,959 $1,145,922 $1,088,112 95.0%
Building Maintenance $2,086,747 $2,111,995 $2,080,500 98.5%
Electrical Maintenance $1,267,222 $1,268,060 $1,132,270 89.3%
Graffiti Abatement $388,141 $418,147 $388,348 92.9%
Parking Meters $106,614 $106,849 $108,539 101.6%
Environmental Programs/Ops $172,769 $172,769 $105,329 61.0%
Total Public Works $10,293,015 $10,520,285 $9,875,494 93.9%
NON-DEPARTMENTAL $3,667,710 $2,525,937 $2,168,634 85.9%
Transfers $354,000 $460,055 $441,087 95.9%
TBD Personnel Reductions (1,000,000) (1,000,000) 0 0.0%
Projected excess appropriations ($3,629,000) ($3,629,000) $0 0.0%
TOTAL GENERAL FUND $82,798,020 $85,138,471 $82,638,559 97.1%
* Percent expended represents the percent of the adjusted budget expended as of the end of the period covered in this
report.
Internal Service Funds Summary
Equipment Maintenance & Fleet Services, Equipment Replacement Fund, and Central
Stores all ended the year within a normal expenditure range. Unexpended funds in the
Equipment Replacement Fund were carried over within encumbrances and have been
expended in fiscal 2010-11.
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The Self Insurance Fund has taken a number of hits over the past few years, including
more than $4 million in legal, settlement and repair costs related to the Culver Crest hillside
litigation. Over the last couple of years, though, focus has been on increasing the fund
balance to a comfortable level. The Self Insurance Fund had a beginning cash balance for
2009-10 of $5.13 million. During fiscal 2009-10, the SIF’s financial stability continued to
increase and ended the year with a fund balance of approximate $5.9 million. Although this
is a much healthier balance than prior years, it only takes one claim to eradicate that entire
balance, as the City experienced with the Culver Crest hillside litigation. Additionally,
insurance costs are expected to increase over the next few years as insurers attempt to
recover some of their financial losses from the last few years through increased premiums.
It is fiscally prudent to have a cash balance on hand to reduce the negative impact of
increased insurance premiums and volatile swings in claims costs from year to year.
Enterprise Funds Summary
Transportation and Refuse Enterprise Funds finished the fiscal year expending 53.1%
and 85.0% of their adjusted budgets, respectively. The Transportation Department’s budget
included appropriations totaling over $10 million for new buses. This expenditure did not
occur in 2009-10, and funding has been carried to fiscal 2010-11 to complete the purchase
once the buses are delivered. For Refuse, these are normal expenditure levels as they
typically expend between 80-90% of their adjusted budget due to a variety of reasons,
including vacancies from staff turnover, capital purchases that were not completed during
the year, or changes in operations that were planned but not entirely implemented.
NOTE: The outstanding Refuse Fund Loan amount will be approximately $977,079 million at the end
of fiscal 2009-10. Of this amount, $635,830 is owed the General Fund, and $341,349 to the
Equipment Replacement Fund. With the close-out of the Innovation Fund, the remaining amount
was added to the General Fund outstanding balance.
The Sewer Fund expended only 79.6% of its operating budget in fiscal 2009-10. This is
due primarily to the significant difference between what was budgeted for payments to the
Hyperion Treatment plant and what was actually billed. For fiscal 2009-10, $3.7 million was
budgeted, per estimates given to staff by Hyperion, and only $2.16 million was billed.
These payments fluctuate greatly from year-to-year, and differences between budget and
payments are often significant.
NOTE: In July 2009, the Sewer Fund re-financed their existing bond debt, which resulted in
approximately $100,000 a year in savings on debt service payments. That savings has been
reflected in fiscal 2009-10.
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FY 2009-10 AND 2010-11 GENERAL FUND SUMMARY
GENERAL FUND ANALYSIS
FY 2009-10 FY 2010-11
Preliminary
Unaudited Interim Budget
Beg. Fund Balance 33,742,100 32,115,442
Taxes 47,854,131 49,803,340
Licenses and Permits 2,176,610 2,223,066
Fines and Forfeits 4,330,870 4,034,000
Intergovernmental 3,587,844 3,789,171
Charges for Services 11,669,335 11,704,344
Charges to Departments 5,288,611 4,803,290
Use of Money & Property 1,400,835 999,000
Other Revenue 177,207 240,660
Interfund Transfers 2,331,458 2,208,290
Normal Revenues 78,816,901 79,805,161
Available Resources 112,559,001 111,920,603
City Manager/Council 1,495,887 1,366,525
City Clerk 446,151 357,361
City Attorney 2,641,932 1,672,059
Finance 4,403,199 4,151,511
HR 1,047,757 988,812
IT 3,142,597 3,072,224
PRCS 6,432,324 6,303,818
Police 28,152,831 28,335,736
Fire 15,502,048 15,298,847
Comm Dev 6,888,618 7,088,985
Public Works 9,875,494 9,432,354
Non-Departmental 2,609,721 4,873,243
Total Exp. Budget 82,638,559 82,941,475
Surplus/(Deficit) (3,821,658) (3,136,314)
Excess Approp. Budgeted - (325,000)
Net Exp. Budget 83,537,036 82,616,475
Net Surplus/(Deficit) (3,821,658) (2,811,314)
Metro Spur Sale 395,000 -
Transfer From ERF 1,250,000 750,000
Transfer From Innovation 550,000 68,000
Total One-Time 2,195,000 818,000
Total Surplus/(Deficit) (1,626,658) (1,993,314)
Ending Fund Balance 32,115,442 30,122,128
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The table above summarizes the detailed results discussed in this report. The first column
contains the preliminary unaudited results for FY 2009-10. As indicated, there was an operating
deficit of over $3.8 million between revenues and expenditures when not considering the one-time
revenue associated with transfers from the Equipment Replacement Fund and Innovation Fund,
and the sale of the Metro Spur. It is only with this $2.195 million in one-time revenue that the total
deficit for 2009-10 is approximately $1.6 million.
For fiscal 2010-11, the Adopted Budget includes a gap of $3.14 million between normal revenues
(revenue sources expected on an annual basis) and total departmental expenditures. This means
that if all positions were filled and all departments spent their total budget allocation, $3.14 million
of reserves would be required in addition to normal revenues. However, due to normal employee
turnover there is some level of position vacancies in any given year, and because of procurement
cycles and other timing related matters there is normally some level of savings in Operations and
Maintenance accounts. The City has a practice of ‘assuming’ this savings in an Excess
Appropriations account. This account is reflected as a negative expenditure line item in a non-
departmental account. For fiscal 2010-11, this assumption was decreased significantly from prior
years mainly because of the number of positions that were reduced from the budget. The initial
excess appropriation amount is only $325,000, although with additional vacancies so far into 2010-
11, this amount may be low. When factoring in this amount and the one-time transfers from the
Equipment Replacement fund ($750,000) and the Innovation Fund ($68,000), the deficit for the
2010-11 Adopted Budget was $1.993 million. Council approved the potential use of up to $2
million to cover this shortfall.
The reduction of positions in fiscal 2010-11 was part of the Phase I of two phases the City is taking
to address the on-going structural deficit. During fiscal 2010-11, management and staff will be
working towards other gap closing measures.
ADDITIONAL COST PRESSURE FOR THE CITY
CalPERS
Along with poor performing revenues, the City will be facing another economic challenge with the
significant increase in CalPERS rates anticipated to begin in fiscal 2011-12. The decline in the
financial markets took a heavy toll on investors during fiscal 2008-09 and continuing into 2009-10.
CalPERS, even with its size, was not immune to the decline and experienced an almost 25% loss
of its assets during the 2008-09 year. Unfortunately, the large loss could not be entirely attributed
to poor market conditions. A few very poor and risky financial decisions made by the board also
contributed to the losses.
As a direct result of the substantial losses experienced during the dot.com financial crisis, which
shot PERS rates up tremendously for many agencies (Culver City saw a $4 - $5 million jump in just
one year), CalPERS implemented a “smoothing” approach to guard against such large annual
increases (or decreases). The smoothing went into effect a few years ago and since then rates
have been hovering around 11% – 12% of salary for miscellaneous employees and 24% - 26% of
salary for public safety employees.
Beginning in fiscal 2011-12 rates will once again start climbing and, per reports from CalPERS and
our actuarial Bartel & Associates, Culver City’s rates are estimated to be in the neighborhood of
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17% of salary for miscellaneous employees and 43% of salary for public safety employees by fiscal
2015-16.
Below are the estimated percentages by fiscal year beginning with actual rates for fiscal 2010-11.
They are broken into three categories based on potential CalPERS returns from 2011 to 2014.
The “75
th
” confidence limit is based on the rate of return being between 0.4% and 3.6%. The “50
th
”
confidence limit is based on the rate being 7.75% (which is CalPERS expected annual rate of
return). The “25
th
” confidence limit anticipates an 11.8% to 15.3% return. The 50
th
confidence limit
figures are those that the actuary deems ‘most likely’.
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
75th 12.2% 14.6% 17.2% 21.9% 23.5% 24.8%
50th 12.2% 14.6% 17.2% 19.8% 20.1% 20.4%
25th 12.2% 14.6% 17.2% 17.7% 17.9% 18.1%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
Percentage
CONTRIBUTION PROJECTIONS -MISCELLANEOUS
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
75th 26.5% 29.8% 35.6% 46.3% 49.9% 52.9%
50th 26.5% 29.8% 35.6% 41.6% 42.2% 42.7%
25th 26.5% 29.8% 35.6% 36.8% 37.2% 37.4%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
Percentage
CONTRIBUTION PROJECTIONS -SAFETY
Thus, using the most likely scenario, the expectation is that the amount we pay for retirement on
behalf of Miscellaneous employees will increase by 64% over the next four years and the amount
for Safety will increase by 60%. The increase in the General Fund contribution dollar amounts for
both miscellaneous and safety employees are shown in the charts below. The third chart shows
the aggregate amount of both groups.
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2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
75th $2.4 $2.8 $3.3 $4.2 $4.5 $4.8
50th $2.4 $2.8 $3.3 $3.8 $3.9 $3.9
25th $2.4 $2.8 $3.3 $3.4 $3.5 $3.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Millions
Miscellaneous Annual Contribution
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
75th $4.8 $5.4 $6.5 $8.4 $9.1 $9.7
50th $4.8 $5.4 $6.5 $7.6 $7.7 $7.8
25th $4.8 $5.4 $6.5 $6.7 $6.8 $6.8
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
Millions
Safety Annual Contribution
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
75th $7.2 $8.3 $9.8 $12.7 $13.6 $14.4
50th $7.2 $8.3 $9.8 $11.4 $11.6 $11.7
25th $7.2 $8.3 $9.8 $10.1 $10.2 $10.3
$6.0
$7.0
$8.0
$9.0
$10.0
$11.0
$12.0
$13.0
$14.0
$15.0
Millions
Miscellaneous & Safety Combined
(General Fund)
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The increases are from $3.1 million to $7.2 million, with the “50
th
” confidence limit being most likely
at a $4.5 million increase. With the current remaining structural deficit already facing the City, this
increase puts the City in a much more difficult position. This is an increase the City must cover
given the current level of staffing. Even with further reductions in personnel, this category will still
see significant increases.
Other Post-Employment Benefits (OPEB)
Perhaps the most significant issue facing the City is the ability to fully fund other postemployment
benefits. As the name suggests, other postemployment benefits (OPEB) are postemployment
benefits other than pensions. OPEB generally takes the form of health insurance and dental,
vision, prescription, or other healthcare benefits provided to eligible retirees, including in some
cases their beneficiaries. It may also include some types of life insurance, legal services, and other
benefits. Culver City provides healthcare benefits to retirees.
The GASB established standards in 1994 for how public employee pension plans and
governmental employers participating in pension plans should account for and report on pension
benefits, but similar provisions did not exist for OPEB. Although the OPEB may not have the same
legal standing as pensions in some jurisdictions, the GASB believed that pension benefits (as a
legal obligation) and OPEB (as a constructive obligation in some cases) are a part of the
compensation that employees earn each year, even though these benefits are not received until
after employment has ended. Therefore, the cost of these future benefits is a part of the cost of
providing public services today. However, most governments reported their cash outlays for OPEB
in a given year, rather than the cost to the employer of OPEB earned by employees in that year;
these two amounts may be vastly different. In the absence of standards similar to those the GASB
enacted for pensions, most governments did not report the full cost of the OPEB earned by their
employees each year.
Furthermore, most governments did not report information about the nature and size of their long-
term financial obligations and commitments related to OPEB. Consequently, the readers of
financial statements, including the public, have incomplete information with which to assess the
cost of public services and to analyze the financial position and long-run financial health of a
government. The purpose of the new standards—GASB Statement No. 43, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans, and GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions—was to address these shortcomings.
In general, governments should account for and report the annual cost of OPEB and the
outstanding obligations and commitments related to OPEB in the same manner as they currently
do for pensions. These amounts should be produced by actuarial valuations performed in
accordance with parameters established by the GASB. The valuations should be conducted at
least every two years for plans that administer OPEB for 200 or more plan members (both active
and retiree).
Pursuant to the GASB 45 requirements, Culver City just had its second actuarial analysis
completed. As was previously established, the City of Culver City provides retiree healthcare
benefits for employees who retire with CalPERS pension benefits immediately upon termination of
employment with the City. This means the requirement to receive this benefit is at least five years
of service in PERS (at any agency), and being at least 50 years of age. Currently, someone
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19
meeting these criteria and coming from another PERS agency, could retire immediately after
starting in Culver City and the City is required to provide the benefit to them for life.
It is also critical to understand that the actuarial report only values current active and retired
participants. It does not include any data for new replacement employees or an expansion of the
work force. This means if the City completely eliminated the retiree medical benefit for any new
hires beginning tomorrow, it would not change the City’s liability. This represents the value of the
promised benefits today. The only way to meaningfully lower the liability would be to make some
reduction in the promise to current employees.
The Annual Required Contribution (ARC) for the fiscal year ending June 30, 2010 is $11.754
million. The amount the City actually paid out in fiscal 2009-10 in retiree medical insurance
premiums for all funds was $3.537 million. To equate this to a similar item, this is like CalPERS
telling the City to provide them $11.754 million this year to fund current and future benefits, and the
City provides them only the $3.5 million for existing retirees. This $8 million the City did not pay
gets recorded on the City-wide financial statements as a liability. Because this is the second year
the City has not pre-funded, the liability is now over $15 million.
The chart below illustrates the current pay-as-you-go status for the General Fund, and current
calculated ARC amount.
There are a few terms to understand related to the Plan’s liabilities. The Present Value of Benefits
(PVB) represents the actuarial present value of all future benefits expected to be paid to current
employees and retirees (NOT future hires). If the liability was turned into a ‘pie chart’, the PVB
represents the whole pie.
The Actuarial Accrued Liability (AAL) is the portion of the PVB attributable to past service. All of
the liability for current retirees is contained in the AAL, because they are done providing service.
For active employees, the portion of their expected service that has already been completed is
also included in the AAL.
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The Normal Cost is the portion of the PVB that is attributed to the current plan year for active
employees.
Each of the liabilities are a present value calculated by using a selected present value rate. Cities
that do not prefund are required to use a discount rate basically equivalent to the historical return
on investment they have received with their funds, or 4%. In order to understand how sensitive the
results are to a discount rate, our actuarial also provided the liability results based on a 7.75% rate
in the table below (valuation date of 7/1/2009):
4.00% 7.75%
Present Value of Benefits (PVB) $213,205,000 $106,896,000
Actuarial Accrued Liability (AAL) $148,528,000 $86,766,000
Normal Cost $6,124,000 $2,529,000
As an explanation of the meaning of the discount rate, the PVB using a 4% discount rate means
that if the City invested $213,205,000 today in an interest bearing account that earns 4%, the
liabilities would be fully funded. By comparison, if the interest bearing account was to earn 7.75%,
only $106,896,000 would be required to fund the liability. The reality is that if the City were to
implement pre-funding to an irrevocable trust, the discount rate (or expected earnings) would
probably be between 6.0% and 6.5%.
The report states that for each payroll dollar towards a Police employee, the City needs to fund an
additional 28.1 cents per dollar towards retiree medical. For each Fire employee, it is 23.8 cents
per dollar, and for each Miscellaneous it is 22.1 cents per dollar. Adding this to existing benefits
and retirement amounts, the City’s benefit structure will begin to approach $1.00 in benefits for
each $1.00 in payroll.
Conclusion
The value of the retiree medical benefit Culver City provides is daunting. The City of Culver City
has one of the richest benefits in the State. The City allows up to family coverage, where many
jurisdictions that do offer the benefit will limit it to the employee cost, or some portion of that cost.
The City also continues coverage after age 65, where many agencies do not. The City clearly
needs to consider whether this benefit is offered to new hires, and also discuss whether to modify
it for current employees. Regardless, the City cannot continue to ignore this liability. In fact,
funding could become a requirement in the next few years. Unless and until there is a major
change in the benefit level, staff’s financial projections will include the City moving towards full pre-
funding within the next five years.
Additional Cost Pressure Items
Another factor for consideration is the likelihood that both Social Security and Medicare will need to
increase employee and employer contributions in the future. As more and more ‘baby boomers’
enter retirement, the pressure on these systems will require either increased contributions or lower
benefits. The ultimate effect of the national healthcare effort and how it will affect these systems,
or our own retiree medical system, is completely unknown at this time.
23
ATTACHMENT 1
21
FIVE YEAR PROJECTION
Fiscal 2010-11 projections for both revenues and expenditures will be closely watched as we move
through the first half of the fiscal year. The table below summarizes the current ‘baseline’ five year
projection for the General Fund. The percentage growth rate assumptions are also included in
separate tables to clearly show the assumptions made.
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Beginning Appropriable Fund
Balance 33,742,100 32,115,085 26,121,216 21,842,316 16,231,416 8,520,516
Total GF Revenues 78,816,735 79,805,131 82,243,000 84,923,000 87,943,000 91,181,000
Total GF Expenditures Before
Adjustments
82,638,750 82,942,000 85,271,900 88,033,900 91,903,900 94,465,900
Implement OPEB Pre-Funding
- - 1,250,000 2,500,000 3,750,000 5,000,000
Net GF Expenditures
82,638,750 82,942,000 86,521,900 90,533,900 95,653,900 99,465,900
Operating Surplus/Deficit
(3,822,015) (3,136,869) (4,278,900) (5,610,900) (7,710,900) (8,284,900)
One-time - ERF 1,250,000 750,000 - - - -
One-time - Innovation Fund 550,000 68,000 - - - -
One-time - Metro Spur Sale 395,000 - - - - -
Estimated Excess Appropriation
Savings Assumption in 2010-11 325,000
Total One-time
2,195,000 1,143,000 - - - -
Gross Surplus/Deficit
(1,627,015) (1,993,869) (4,278,900) (5,610,900) (7,710,900) (8,284,900)
Transfer from Reserve for one-time
Capital expenses - 4,000,000 - - - -
Ending Appropriable Fund Balance 32,115,085 26,121,216 21,842,316 16,231,416 8,520,516 235,616
38.86% 31.84% 25.51% 18.11% 8.99% 0.24%
24,882,600 25,956,570 27,160,170 28,696,170 29,839,770
Current Year and Five-Year Forecast (Projected for 10-11)
As discussed in detail above, the City has been discussing the urgent issue of funding the future
cost of retiree medical for current employees and retirees. Included about a third of the way down
in the chart above is a “stepping stone” approach to reaching this goal of the Annual Required
Contribution the City should be making on an annual basis to fund the cost of retiree medical for
current employees and retirees. Legally, the City can continue on a ‘pay-as-you-go’ funding basis
for this benefit and record the difference as a liability on its financial statements. However, the
pay-as-you-go costs will increase dramatically and become a larger and larger percentage of the
annual operating budget. The Finance Department cannot recommend continuing the pay-as-you-
go approach to funding this benefit. Currently the General Fund pay-as-you-go amount is
approximately $3.0 million. The General Fund Annual Required Contribution is over $8.0 million,
which leaves a current unfunded amount of over $5.0 million.
The following tables illustrate the current growth assumptions made for future year projections.
These rates are reviewed on an annual basis and take into account criteria such as average
historical revenue trends, current economic trends, and known revenue or expenditure increases
that will occur given a corresponding event or action.
24
ATTACHMENT 1
22
REVENUES 2011-12 2012-13 2013-14 2014-15
Property Tax
(1)
2.0% 2.0% 3.0% 3.0%
Sales Tax 4.0% 4.5% 4.7% 5.0%
PSAF TAX 4.0% 4.5% 4.7% 5.0%
Business License Tax
(2)
3.5% 4.0% 4.5% 5.0%
Franchise Tax 2.5% 2.5% 2.5% 2.5%
Real Property Tansfer Tax
(3)
0.0% 0.0% 0.0% 0.0%
Utility Users Tax - Electricity 2.5% 2.5% 2.5% 2.5%
Utility Users Tax - Gas 3.5% 3.5% 3.5% 3.5%
Utility Users Tax - Water 3.0% 4.0% 4.0% 4.0%
Utility Users Tax - Telecomm 2.5% 2.0% 1.5% 1.5%
Utility Users Tax - Cable TV 3.5% 3.5% 4.0% 4.0%
Transient Occupancy Tax 5.0% 4.5% 4.5% 4.0%
Commercial/Industrial Dev Tax
(3)
0.0% 0.0% 0.0% 0.0%
Licenses and Permits 5.0% 5.0% 6.0% 6.0%
Intergovernmental 3.5% 3.5% 3.5% 3.5%
Charges for Services 3.5% 3.5% 4.0% 4.0%
Fines and Forfeitures 3.5% 3.5% 3.5% 3.5%
Use of Money and Property 0.0% 2.0% 2.0% 2.0%
Interfund Revenues 1.0% 1.0% 2.0% 2.0%
Other Revenues 0.0% 0.0% 0.0% 0.0%
Transfers-In
(4)
0.0% 0.0% 0.0% 0.0%
(3) These revenues sources can fluctuate greatly year-to-year. Projection estimated year-to-year.
GROWTH RATE ASSUMPTIONS
(1) Includes Pass-through Payments. Base property Tax growth only 2%
(2) Includes Business Tax Certificate
(4) Fiscal 2010-11 includes transfer from the Innovation Fund ($68,000) and ERF ($750,000).
25
ATTACHMENT 1
23
GROWTH RATE ASSUMPTIONS (cont’d)
EXPENDITURES 2011-12 2012-13 2013-14 2014-15
Salary
(5)
0.0% 0.0% 2.0% 2.0%
Part-time salary 0.0% 0.0% 0.0% 0.0%
Overtime 0.0% 0.0% 2.0% 2.0%
Fire (Constant Staffing) 0.0% 0.0% 0.0% 0.0%
Contract Labor
(6)
0.0% 0.0% 0.0% 0.0%
Deferred Compensation 0.0% 0.0% 0.0% 0.0%
Social Security 0.0% 0.0% 2.0% 2.0%
Retirement (Employer portion) 16.0% 19.0% 18.0% 4.0%
Deferred Retirement 0.0% 0.0% 2.0% 2.0%
Workers Compensation 2.0% 2.0% 2.0% 2.0%
Group Insurance
(7)
8.0% 7.5% 7.0% 6.5%
Retiree Medical 11.0% 11.0% 10.0% 9.0%
State Disability Insurance (SDI)
(8)
2.0% 2.0% 2.0% 2.0%
Health Benefits 0.0% 0.0% 0.0% 0.0%
Auto Allowance 0.0% 0.0% 0.0% 0.0%
Education Reimbursemnt 0.0% 0.0% 0.0% 0.0%
Uniform Allowance 0.0% 0.0% 0.0% 0.0%
Amortization of Equipment 0.0% 0.0% 0.0% 0.0%
O & M 2.0% 2.0% 2.0% 2.0%
Liability Reserve Charge 0.0% 0.0% 0.0% 0.0%
Garage Charges 5.0% 5.0% 5.0% 5.0%
Other/Transfers
(9)
0.0% 0.0% 0.0% 0.0%
(5) Fiscal 2010-11 includes full year of Miscellaneous employees COLA. Subsequent fiscal years use
conservative increases. Includes reduction of 60 positions from 09-10.
(6) Contract Labor in Building Safety approved on an annual basis due to development activity.
(7) Group Insurance includes: Medical, Dental, Vision, and Life Insurance.
(8) Annual increases not based on personnel costs. State controlled.
(9) Includes reserve funds transferred to capital projects.
Staff reviews and adjusts these percentages on an annual basis as needed. Some items of note:
Sales Tax will most likely take until fiscal 2013-14 or 2014-15 to recover to the level of receipts
experienced in fiscal 2007-08; Retiree medical premiums are expected to increase slightly faster
than active employees due to an increasing number of retirees relative to active employees
(actuarial estimates show that by approximately fiscal 2014-15, the number of retirees will reach or
surpass the number of active employees); Lastly, the projections above include an assumption of
no additional salary increases until 2013-14, and even then only a 2% increase for 2013-14 and
2014-15. Salary increases prior to this, or greater than this, will result in a corresponding increase
to the expenditure numbers.
26
ATTACHMENT 1
24
CONCLUSION
Culver City, like virtually all California cities, has been hard-hit by the recession. Comparatively,
our region fared better than others, but even with the beginning of a modest recovery we face
significant challenges to fund increasing retirement costs, retiree medical costs and beginning to
address deferred maintenance or replacement of infrastructure. While the City significantly
reduced the General Fund budget for Fiscal Year 2010-11, this report summarizes the fact that we
still face a significant gap. Lowering existing personnel costs is certainly part of the solution the
City must consider, but that will not realistically solve the deficit. Major cuts to City services and
personnel will dramatically change this community and what it represents and provides to its
residents. To avoid this, the reality is that this city will likely need to consider an increase in some
form of tax revenue to secure its financial future. The balance of further cost-cutting, service
reduction or revenue increases is where we must focus our attention.
27
ATTACHMENT 1
25
28
ATTACHMENT 1FINANCIAL
FINANCIAL
MONITORING
MONITORING
REPORT
REPORT
CURRENT MONTH YEAR TO DATE PAGE
GENERAL FUND
General Fund Combined Revenues & Expenditures Page 3
General Fund Expenditures NORMAL NORMAL Page 3
General Fund Department Analysis BELOW/ABOVE/NORMAL BELOW/ABOVE/NORMAL Page 4
General Fund Revenues NEGATIVE NORMAL Page 5
Other Revenues NEGATIVE NEGATIVE Page 5
Sales Tax NEGATIVE NEGATIVE Page 6
Business License Tax NEGATIVE NEGATIVE Page 6
Utility Users Tax NEGATIVE NEGATIVE Pages 7- 9
Property Tax Revenue POSITIVE POSITIVE Page 9
Charges for Services POSITIVE NEGATIVE Page 10
Transient Occupancy Tax NEGATIVE NEGATIVE Page 11
One-time Revenue Receipts and GF Reserve % Page 11
MAIN ENTERPRISE FUNDS
EXPENDITURE / REVENUE EXPENDITURE / REVENUE
Refuse Fund BELOW/NORMAL BELOW/NORMAL Page 12
Transit Operations Fund BELOW/NEGATIVE BELOW/NEGATIVE Page 13
Sewer Operating Fund BELOW/NORMAL BELOW/NORMAL Page 14
MAIN INTERNAL SERVICE FUNDS
EXPENDITURE / REVENUE EXPENDITURE / REVENUE
Equipment Maint. & Fleet Svcs. NORMAL/NORMAL NORMAL/NORMAL Page 15
Self-Insurance Fund ABOVE/NORMAL ABOVE/NORMAL Page 16
CAPITAL IMPROVEMENT FUNDS Page 17
OTHER FUNDS Page 18
PERFORMANCE AT A GLANCE
Fiscal 2009-10 Preliminary Year End
BELOW BUDGET
OR POSITIVE
= > 4% compared with prior year for revenues, or below expenditure target
NORMAL = Positive variance or negative variance < 2% compared prior year
WARNING = Negative variance of 2— 4% compared with prior year.
NEGATIVE = Negative variance of > 4% compared with prior year.
29
ATTACHMENT 2
ECONOMIC & FISCAL UPDATE
Economy
According to the National Bureau of Economic Research, the recession is
officially over. They dated the beginning and end of the recession as De-
cember 2007 to June 2009. Even though the economy has shown some
signs of growth, areas such as housing, retail sales, and employment re-
main depressed, so by no means is the economy back to normal. In fact,
many pundits and economists still believe a double dip recession is a real
possibility. Even if the economy does not dip into another “technical” re-
cession, unemployment is expected to remain high and growth
(particularly in California) will likely remain tepid for the foreseeable future.
Fiscal Update
All of the numbers contained in this report are the unaudited, preliminary
year-end totals for fiscal year 2009-10. The revenue and expenditure to-
tals will not be finalized until the City’s auditors complete their review of the
financial statements.
The General Fund ended the fiscal year with revenue totaling $81,011,903
and expenditures of $82,638,557, a budget deficit exceeding $1.6M. How-
ever, the fiscal year 2009-10 revenues include one-time funding from the
Equipment Replacement and Innovation funds totaling $1,8M, as well as
$395k from the sale of property, so the actual operating budget deficit was
over $3.8M.
The General Fund’s largest source of revenue is sales tax, which has de-
clined dramatically over the last two years. For fiscal year 2009-10, sales
tax receipts totaled $14,314,155, which is over 20% lower than the re-
ceipts in fiscal year 2007-08. Even the addition of new stores to the re-
modeled Westfield Culver City Mall has not generated enough sales to
fully offset lower consumer spending and the loss of major sale tax gen-
erators. Another area that has declined dramatically is building and devel-
opment related fees and taxes. For example, in fiscal year 2007-08 Com-
mercial Industrial Development tax revenue reached a high of $2.1M, but
in fiscal year 2009-10 revenue dropped to $191k. On a brighter note,
property tax receipts increased 7% from fiscal year 2008-09 and transient
occupancy taxes remained steady, showing just a slight increase.
General Fund expenditures ended the year lower than each of the last two
fiscal years. This is a result of the hiring freeze (non-public safety) and a
reduction of nonessential operations and maintenance expenditures.
Compared to fiscal year 2008-09, personnel expenditures increased 0.5%,
operations and maintenance expenses decreased 1.2%, and transfers to
other funds declined 68%. The decline in transfers to other funds is wholly
attributed to the low level of funding for capital projects. Historically, the
General Fund transfers over $1M to fund capital projects, but in an effort to
reduce the budget deficit, the General Fund only transferred $205k during
fiscal year 2009-10.
Culver City’s enterprise funds; Refuse, Sewer, and Transportation are
relatively healthy, although there are concerns about the future of Trans-
portation’s various revenue streams. The status of the remaining funds
will be addressed later in the report.
2
“Throw money at a problem and it will remain.”
Toni Kakko
ECONOMIC INDICATORS
ECONOMY
Nat’l Consumer Price Index: Down
The CPI decreased 0.1% in May. Over
the last 12 months, CPI has increased
1.1%. The increase was driven largely
by energy costs.
Interest Rates: Even
On June 23rd, the Federal Open Market
Committee voted to keep the Federal
Funds rate at a target range of 0 to
0.25%. The Fed expects inflation to
remain subdued, so rates are expected
to remain low for the near future.
National GDP: Up
Revised estimates show that the GDP
increased by an annualized rate of
1.6% in the second quarter of 2010.
Ocean Container Traffic: Up
In June, ocean container traffic into the
ports of Los Angeles and Long Beach
was up 29.6% from the same month
last year. This is the seventh consecu-
tive month of year over year increases.
Airport Passenger Traffic: Up
Passenger traffic to local airports in-
creased 4.0% from June 2009 to June
2010. International traffic increased
11.6%, while national traffic increased
1.4% over the last year.
UNEMPLOYMENT RATES
National
May 2009 9.4%
May 2010 9.7%
June 2009 9.5%
June 2010 9.5%
State
May 2009 11.3%
May 2010 12.4%
June 2009 11.6%
June 2010 12.3%
LA County
May 2009 11.2%
May 2010 12.1%
June 2009 11.3%
June 2010 12.2%
30
ATTACHMENT 2
GENERAL FUND
3
GENERAL FUND ANALYSIS:
GENERAL FUND EXPENDITURES THRU JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09,
and 2009-10) [Cumulative]
GENERAL FUND EXPENDITURES — At the end of fiscal year 2009-10, expenditures totaled
$82,638,557 or 97.1% of the adjusted budget. Expenditures were 1.0% lower than the previous
fiscal year and 1.6% lower than the expenditures in fiscal year 2007-08. Compared to fiscal year 2008-09, personnel
costs increased 0.5%, operations and maintenance expenses decreased 1.2%, and transfers to other funds declined
68%. The months of August and January have higher expenditures because they contain three pay periods, while the
other months only have two pay periods.
REVENUES & EXPENDITURES THROUGH JUNE 2010 [Cumulative]:
General Fund revenues are accrued back to a prior
fiscal year for several of the larger categories such as
Sales Tax, TOT, and UUT. This causes the monthly
amount shown for July, and in some cases August, to
look “low” when compared to future months. When
comparing revenues and expenditures in a fiscal year
it is important to remember this accrual of revenues to
the prior year causes the large gap. In-lieu payments
for Sales Tax and Motor Vehicle License Fees are
received in January and May of each year. Property
Tax and Business License Tax are also seasonal and
are recognized most significantly in December/April
and February/March respectively.
BELOW BUDGET
$0
$20
$40
$60
$80
$100
Dollars in Millions
2008-09 Revenue 2008-09 Expenditures
2009-10 2009-10
Revenue Expenditures
July 1,352,319 $ 4,406,707 $
August 5,501,702 8,905,669
September 4,986,324 6,707,352
October 4,833,294 6,093,888
Novem ber 5,137,094 6,251,153
Decem ber 6,260,180 6,401,137
January 8,980,097 9,300,747
February 8,758,990 6,289,551
March 10,014,960 6,598,270
April 6,273,622 6,096,716
May 9,105,601 6,221,157
June 9,801,720 9,366,210
TOTAL 81,005,904 $ 82,638,557 $
$0
$20
$40
$60
$80
$100
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
2007-08 2008-09 2009-10
Expenditures Expenditures Expenditures
July 4,177,856 $ 4,354,540 $ 4,406,707 $
August 6,110,635 9,117,410 8,905,669
September 8,739,298 6,660,426 6,707,352
October 6,614,130 6,282,672 6,093,888
Novem ber 5,739,487 6,246,091 6,251,153
Decem ber 7,463,020 6,322,259 6,401,137
January 6,833,180 7,044,018 9,300,747
February 6,081,761 6,520,875 6,289,551
March 8,423,258 8,674,051 6,598,270
April 6,605,769 6,536,762 6,096,716
May 5,836,127 6,450,987 6,221,157
June 11,334,820 9,226,738 9,366,210
TOTAL 83,959,341 $ 83,436,829 $ 82,638,557 $
Adj Budget 86,018,123 $ 87,743,489 $ 85,138,468 $
$0
$20
$40
$60
$80
$100
Dollars in Millions
2009-10 Revenue 2009-10 Expenditures
31
ATTACHMENT 2
GENERAL FUND
Comparison of Adjusted Budget to Actual: Target = 96.00% through June 2010:
GENERAL FUND DEPARTMENT ANALYSIS:
EXPENDITURES: Over 80% of the General Fund adopted budget is personnel related expenditures. The adjusted budget amount
includes operating encumbrance carryover amounts from the prior fiscal year. Through June, most Departments are in-line or below
the target budget. Below are notable variances for Departments over or below the target.
Departments significantly under Target (more than 10%):
City Council — Expenditures are below target primarily due to lower than expected retiree medical insurance, contractual services,
and audit services costs.
City Clerk — The City Clerk’s office had one vacancy which kept personnel expenditures below budget.
PR&CS — Three vacancies in the Parks division and one vacancy in the PR&CS Administrative division were the primary reason
that the PR&CS department’s expenditures ended the year below the target.
Non-Departmental — Through June, Non-Departmental is only 85.8% expended due to a few factors. For one, utility costs were
$165,000 lower than anticipated. Also, actual expenses for membership and dues and contractual services were well under budget.
Departments over Target:
Fire Department — The Fire Department is over target due to higher than anticipated constant staffing costs. These are due in part
to Strike Team deployments to assist with wild fires. The direct costs of Strike Teams are reimbursed, but the City is responsible for
the indirect costs, which are primarily the constant staffing expenditures necessary to maintain fully staffed fire stations.
NOTABLE EXPENDITURE VARIANCES THROUGH JUNE 2010:
4
GENERAL FUND DEPARTMENTS
GENERAL GOVERNMENT
CITY COUNCIL $ 265,823 $ 265,823 $ 207,578 78.1% $ 255,190
CITY MANAGER 1,290,869 1,350,312 1,288,309 95.4% 1,296,300
CITY CLERK 562,079 564,207 446,151 79.1% 541,638
FINANCE DEPT 4,653,955 4,891,767 4,403,198 90.0% 4,696,096
CITY ATTORNEY 1,912,650 2,893,653 2,641,932 91.3% 2,777,907
HUMAN RESOURCES 1,167,961 1,214,414 1,047,757 86.3% 1,165,837
INFORMATION TECH 3,364,099 3,580,086 3,142,596 87.8% 3,436,882
TOTAL GENERAL GOVERNMENT $ 13,217,436 $ 14,760,262 $ 13,177,521 89.3% $ 14,169,851
PARKS, REC. & COMMUNITY SVCS 7,239,432 7,648,339 6,432,323 84.1% 7,342,406
POLICE DEPARTMENT 29,632,782 30,098,101 28,152,831 93.5% 28,894,177
FIRE DEPARTMENT 15,471,159 15,856,201 15,502,049 97.8% 15,221,953
COMMUNITY DEVELOPMENT 7,551,441 7,898,287 6,888,619 87.2% 7,582,356
PUBLIC WORKS 10,293,015 10,520,286 9,875,494 93.9% 10,099,474
NON-DEPARTMENTAL 3,667,710 2,526,332 2,168,634 85.8% 2,425,279
Transfers 354,000 459,660 441,087 96.0% 441,274
Excess appropriation (4.0%) & Other (4,629,000) (4,629,000) 0 - -
TOTAL GENERAL FUND $ 82,797,975 $ 85,138,468 $ 82,638,557 97.1% -
TARGET
AMOUNT
ACTUAL
EXPENDED
AS OF 6/30/10
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PERCENT
EXPENDED
2009-10
32
ATTACHMENT 2
GENERAL FUND
5
GENERAL FUND REVENUE ANALYSIS:
TOTAL GENERAL FUND REVENUES THROUGH JUNE 2010 (Comparison of Fiscal Years
2007-08, 2008-09, and 2009-10) [Cumulative]
TOTAL GENERAL FUND REVENUES — Total General Fund revenues for fiscal year 2009-10 were $81,011,903,
which is 99.7% of the adjusted budget projections. Total revenue was $1.7M lower than the revenue received in fiscal
year 2008-09 and $5.3M lower than fiscal year 2007-08.
Commercial Industrial Development Tax — Receipts for commercial/industrial development tax totaled $191,695.
This is the lowest level of revenue since 2003-04. Slow development activity has continued to plague this category.
NOTE: During the year the budget projection for this category was decreased to $300,000 from $985,000.
Fines & Forfeitures — Through the end of the fiscal year, fines and forfeiture’s receipts totaled $4,330,870, or 100.6%
of budgeted projections. Fines & Forfeitures is made up of moving violations, which includes red-light camera viola-
tions and parking violations.
NOTE: During the year the budget projection for this category was increased to $4,306,000 from $4,057,000.
Real Property Transfer Tax — Real Property Transfer Tax ended the year with $1,001,943 in receipts, which is
133.6% of the budgeted projection. Due to the continued slow real estate activity receipts remain low, however the
receipts in the last couple months of the fiscal year exceeded expectations. In past years this category has been very
volatile and is highly dependent on commercial real estate transactions.
NOTE: During the year the budget projection for this category was decreased to $750,000 from $1,500,000.
Intergovernmental — State Motor Vehicle License Fee (VLF) In-Lieu is the primary revenue in this category. VLF In-
Lieu is paid to municipalities to make up for lost local revenue when the VLF rates were reduced from 2% to 0.65% in
2004. These payments are received in equal installs in January and May of each fiscal year. Receipts through the
end of the year were $3,326,976. A smaller portion of the Intergovernmental revenue is the VLF administrative reve-
nue, which exceeded expectations and ended the year with total revenue of $119,871 or 184% of the adjusted budget.
NOTE: During the year the budget projection for this category was increased to $3.3 million from $3.2 million.
NOTE: During the year the budget projection for this category was decreased to $65,000 from $197,000.
Westfield Sign Revenue — This year the city received new revenue as part of an agreement with Westfield. For fis-
cal year 2009-10, sign revenue totaling $55,645 was received.
Franchise Tax — Revenue totaled $1,278,427 or 96.1% of the budgeted projections. Franchise tax is relatively sta-
ble, with the majority of the revenue paid by cable and gas companies for use of underground pipelines within city lim-
its.
2007-08 2008-09 2009-10
Revenue Revenue Revenue
July 341,121 $ 124,986 $ 1,352,319 $
August 5,062,285 4,966,099 5,501,702
September 4,334,446 6,791,085 4,986,324
October 4,165,591 4,644,193 4,833,294
Novem ber 4,559,561 5,309,425 5,137,094
Decem ber 9,017,272 6,470,501 6,260,180
January 10,436,417 8,816,481 8,980,097
February 9,466,608 7,185,772 8,758,990
March 10,417,263 11,287,839 10,014,960
April 8,838,122 7,623,944 6,273,622
May 8,946,942 8,443,987 9,105,601
June 10,713,892 11,081,440 9,801,720
TOTAL 86,299,520 $ 82,745,752 $ 81,011,903 $
Adj Budget 82,774,909 $ 85,345,425 $ 81,212,332 $
-$10
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
33
ATTACHMENT 2BUSINESS TAX THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-10)
[Cumulative]
GENERAL FUND
6
GENERAL FUND REVENUE ANALYSIS (continued):
SALES TAX THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-10)
[Cumulative]
SALES TAX— Total Sales Tax revenue for fiscal year 2009-10 was down $1.7M from the fiscal year
2008-09 totals. Compared to fiscal year 2007-08, receipts were down $3.6M or approximately 20%.
This puts sales tax receipts at levels not seen since fiscal 2001-02. The renovation and addition of new stores at the West-
field shopping mall has helped sales tax receipts, but it is not enough to offset the new consumer mindset and the loss of ma-
jor sales tax generators of the last couple years. Bargain shopping is more popular than ever and experts are calling this the
new normal. In the first and second quarters of 2010, sales tax receipts began to stabilize, but any substantial growth is not
projected in the near future.
NOTE: The fiscal 2009-10 sales tax revenue budget was reduced from $16,165,145 to $14,563,110. The original budget
projections were based on estimates by the City’s sales tax consultant. These projections proved to be overly optimistic.
NEGATIVE
BUSINESS TAX — For fiscal year 2009-10, business tax license revenue exceeded the budget pro-
jections by over $100k. However, revenue lagged fiscal 2008-09 totals by over $880k and fiscal 2007
-08 receipts by over $500k. During the fiscal year 2009-10, businesses were paying taxes based on their gross receipts for
the 2009 calendar year. Business taxes were due by March 1st this year, so the majority of the tax receipts were received in
February and March.
POSITIVE
$0
$4
$8
$12
$16
$20
Dollars in Millions
2007-08 2008-09 2009-10 09-10 Revised Budget
2007-08 2008-09 2009-10
July 912,800 $ 883,000 $ 731,900 $
August 1,217,000 1,177,300 975,800
September 1,169,765 1,153,656 991,762
October 938,300 903,900 767,400
Novem ber 1,251,100 1,205,200 869,800
Decem ber 1,156,535 1,101,267 1,101,406
January 3,471,855 3,119,307 2,512,754
February 1,444,200 1,090,000 1,170,000
March 1,021,326 1,066,905 871,196
April 876,200 751,800 658,700
May 3,557,052 3,127,807 2,580,655
June 975,468 776,770 1,122,381
Prior Yr Acc (2,129,800) (2,060,300) (1,707,700)
Current Yr Acc 2,060,300 1,707,700 1,668,100
TOTAL 17,922,101 16,004,311 14,314,155
Adj Budget 18,300,000 16,718,000 14,563,110
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
2007-08 2008-09 2009-10 09-10 Budget
2007-08 2008-09 2009-10
July 166,407 $ 145,420 $ 144,821 $
August 90,161 127,706 91,285
September 40,187 102,857 33,837
October 48,583 56,862 68,109
Novem ber 44,065 29,579 67,728
Decem ber 132,250 143,597 166,390
January 753,918 545,761 536,077
February 3,428,559 2,529,652 3,441,251
March 4,953,144 5,693,894 4,477,464
April 298,323 790,587 201,327
May 73,308 218,997 298,196
June 142,573 149,774 127,114
TOTAL 10,171,478 $ 10,534,685 $ 9,653,598 $
Adj Budget 9,144,000 $ 10,150,000 $ 9,541,000 $
34
ATTACHMENT 2
GENERAL FUND
7
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and
2009-10) [Cumulative]
2007-08 2008-09 2009-10
July 417,420 $ 433,414 $ 467,916 $
August 500,334 524,237 530,976
September 669,748 636,710 540,491
October 556,764 611,030 622,753
Novem ber 621,597 637,669 624,382
Decem ber 513,303 464,135 456,489
January 454,472 456,181 537,513
February 485,773 435,445 429,754
March 426,921 437,940 387,256
April 441,445 440,247 459,497
May 425,935 394,215 422,544
June 432,822 406,363 380,795
Prior Yr Acc (417,420) (433,414) (467,916)
Current Yr Acc 433,414 467,916 382,629
TOTAL 5,962,528 $ 5,912,087 $ 5,775,079 $
Adj Budget 5,800,000 $ 6,303,600 $ 6,200,000 $
Electricity UUT
2007-08 2008-09 2009-10
July 98,599 $ 121,396 $ 56,849 $
August 88,810 114,570 51,456
September 76,452 90,419 49,460
October 66,079 79,765 50,140
Novem ber 62,463 86,173 50,175
Decem ber 68,182 72,379 65,229
January 88,358 90,211 88,581
February 132,893 126,404 132,739
March 171,072 142,148 152,337
April 180,198 110,984 129,384
May 168,955 81,106 97,577
June 155,111 65,010 81,719
Prior Yr Acc (98,599) (121,983) (56,849)
Current Yr Acc 121,983 56,849 74,612
TOTAL 1,380,558 $ 1,115,432 $ 1,023,409 $
Adj Budget 1,346,000 $ 1,140,000 $ 1,140,000 $
Natural Gas UUT
2007-08 2008-09 2009-10
July 89,981 $ 100,185 $ 99,617 $
August 74,166 84,040 89,416
September 95,276 102,020 107,735
October 75,300 85,397 84,147
Novem ber 90,181 99,505 100,612
Decem ber 70,436 79,947 79,195
January 86,457 91,171 94,110
February 66,376 71,015 72,473
March 82,704 89,995 84,095
April 69,891 70,276 67,566
May 87,329 90,956 87,956
June 77,785 80,049 82,365
Prior Yr Acc (89,981) (100,185) (99,617)
Current Yr Acc 100,185 99,617 110,905
TOTAL 976,088 $ 1,043,989 $ 1,060,575 $
Adj Budget 902,000 $ 960,000 $ 1,068,000 $
Water UUT
$0
$1
$2
$3
$4
$5
$6
$7
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
-$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
35
ATTACHMENT 2
GENERAL FUND
8
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and
2009-10) [Cumulative]
2007-08 2008-09 2009-10
July 372,380 $ 452,733 $ 459,736 $
August 416,124 459,313 463,425
September 442,406 464,139 401,781
October 380,131 451,736 501,048
Novem ber 430,844 475,264 532,236
Decem ber 453,656 442,409 460,922
January 443,788 398,430 378,850
February 416,961 415,252 451,143
March 375,482 542,671 345,667
April 456,352 462,296 531,685
May 440,672 448,159 524,905
June 440,576 532,444 543,417
Prior Yr Acc (372,380) (452,908) (460,248)
Current Yr Acc 452,908 460,248 476,069
TOTAL 5,149,900 $ 5,552,186 $ 5,610,637 $
Adj Budget 5,000,000 $ 5,301,000 $ 5,301,000 $
Telephone UUT
2007-08 2008-09 2009-10
July 54,986 $ 56,845 $ 62,640 $
August 55,554 57,528 57,215
September 58,837 58,157 56,653
October 55,463 58,536 56,283
Novem ber 52,377 59,464 57,185
Decem ber 52,320 59,680 -
January 52,274 59,421 199,788
February 173,354 60,536 56,884
March 52,976 59,941 (29,983)
April 55,901 59,878 56,894
May 55,521 59,312 57,116
June 55,343 58,446 58,979
Prior Yr Acc (54,986) (56,845) (62,640)
Current Yr Acc 56,845 62,640 46,084
TOTAL 776,765 $ 713,539 $ 673,098 $
Adj Budget 608,000 $ 675,000 $ 681,000 $
Cable UUT
2007-08 2008-09 2009-10
July 1,033,366 $ 1,164,573 $ 1,146,758 $
August 1,134,988 1,239,687 1,192,488
September 1,342,719 1,351,446 1,156,120
October 1,133,737 1,286,463 1,314,371
Novem ber 1,257,463 1,358,075 1,364,590
Decem ber 1,157,898 1,118,550 1,061,835
January 1,125,350 1,095,414 1,298,842
February 1,275,358 1,108,652 1,142,994
March 1,109,156 1,272,695 939,371
April 1,203,787 1,143,681 1,245,027
May 1,178,412 1,073,749 1,190,099
June 1,161,637 1,142,313 1,147,275
Prior Yr Acc (1,033,366) (1,165,335) (1,147,270)
Current Yr Acc 1,165,335 1,147,270 1,090,298
TOTAL 14,245,839 $ 14,337,233 $ 14,142,798 $
Adj Budget 13,656,000 $ 14,379,600 $ 14,390,000 $
Total All UUT
-$1
$0
$1
$2
$3
$4
$5
$6
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
$0.9
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
-$2
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
36
ATTACHMENT 2
GENERAL FUND
9
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH JUNE 2010
The City usually receives UUT revenue the month after it is collected by the utility companies. Because of this de-
lay, all July receipts and some August receipts are accrued back to the previous fiscal year. The budget projec-
tions are adjusting accordingly. Overall, UUT receipts totaled $14,142,798 and were 1.4% lower that fiscal year
2008-09.
ELECTRICITY UUT — Total revenue was $5.78M, which is 2.3% lower than last year. During the
year, the budget for this revenue category was reduced from $6,407,000 to $6,200,000. The de-
cline can be partially attributed to the mild weather in the early spring and summer.
NATURAL GAS UUT — Natural gas revenues ended the year totaling $1.11M, which is 8.2%
lower than receipts at this point last year. The low revenue is primarily due to low natural gas
prices, which is caused by an oversupply of natural gas in the U.S.
WATER UUT — Through the end of fiscal 2009-10, Water UUT receipts are 1.6% higher than the
total receipts last year. City Council adopted a water conservation ordinance, which went into af-
fect in December 2009. So far the changes have not had much of an affect on Water UUT receipts, but staff will continue to
monitor receipts.
TELECOMMUNICATIONS UUT — For fiscal year 2009-10, telecommunications revenue totaled
$5,610.637, or 105.8% of the adjusted budget. Revenue was 1.6% higher than last fiscal year’s
totals.
CABLE TELEVISION UUT — Cable TV UUT receipts totaled $673,098 which is 5.7% lower than
last year. The lower receipts can be partially attributed to consumers cutting back on their cable
packages and reducing their premium channels.
PROPERTY TAX — At the end of the fiscal year, property taxes totaled $3,525,093, which was
$125,093 higher than the budgeted projections. Even though the Culver City real estate market
has softened, the downturn has not had a significant visible affect on property tax receipts. Culver City has many long-
time homeowners, which due to Prop 13, keeps their property taxes low and the City’s receipts relatively stable. To bal-
ance the fiscal 2009-10 budget the State of California borrowed $858,929 of the City’s property taxes. Culver City
joined other cities to securitize the debt and thus received 100% of City’s fiscal year 2009-10 property tax. The securi-
tized property tax payments were received in January and May.
PROPERTY TAX THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-10)
[Cumulative]
NORMAL
NEGATIVE
-$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Dollars in Millions
2007-08 2008-09 2009-10 09-10 Revised Budget
2007-08 2008-09 2009-10
July 105,671 $ 65,250 $ 135,260 $
August - 17,642 107,307
September - - -
October - - -
Novem ber 33,620 132,865 146,159
Decem ber 1,153,913 1,234,198 879,421
January 393,974 369,590 739,890
February 222,451 175,604 338,335
March 15,527 3,368 4,437
April 981,287 1,197,760 608,816
May 145,646 (74,574) 630,042
June 23,924 0 5,239
Prior Yr Acc (105,671) (82,892) (247,009)
Current Yr Acc 82,892 256,514 177,194
TOTAL 3,053,233 $ 3,295,325 $ 3,525,093 $
Adj Budget 3,147,000 $ 3,340,000 $ 3,400,000 $
NEGATIVE
NEGATIVE
POSITIVE
NORMAL
37
ATTACHMENT 2CHARGES FOR SERVICES — The Charges for Services category is comprised of various revenues that
the City receives for providing services. Many of the services are recreation related, but revenue is also
received for fire inspections, fire strike teams, plan checks, planning services, passport processing, building rentals, and live scan
fingerprinting, among other services. Excluding Billings to RDA, which is the monthly payment to reimburse the City for RDA
funded positions, the Charges for Services category is at 100.9% of the adjusted budget. Some revenues within Charges for
Services have declined due to the economic conditions, especially the planning and building related services, but others like
Ambulance Billings, have increased. However, most of the fees have increased in recent years to meet cost recovery goals,
so the annual increases have enabled the growth of many of the revenues.
GENERAL FUND
10
GENERAL FUND REVENUE ANALYSIS (continued):
CHARGES FOR SERVICES THROUGH JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09,
and 2009-10) [Cumulative]
Charges for Services — Individual Category Notables through JUNE 2010
Veterans Memorial Rental Fees — Through the end of the fiscal year, fee receipts for the Veteran’s Me-
morial Rental Fees, which includes the Senior Center and Teen Center rentals, were at 96.7% of the adjusted budget
projections for the fiscal year. Auditorium rental revenue exceeded forecasts, but Meeting Room, Teen Center, and
Senior Center rentals all lagged.
Public Safety Related Fees — For fiscal year 2009-10 Police Department charges for services were 118% of
the adjusted budget. These revenues are made up of records requests, live scan fingerprints, vehicle impounds, and
other miscellaneous fees. Live scan revenue is about 30% lower than last year, but the other revenues are higher
than previous years.
Plan Check Fees — At the end of the fiscal year, plan check fees were at 89.1% of the adjusted budget. Early
in the fiscal year, these receipts were well above the projections, so the adjusted budget was increased. The strong
receipts early in the year were due to the Westfield Mall renovations and finalization of the Sony construction projects,
and by the end of the year there was very little major construction.
Various Recreation Fees — Recreation fees in the amount of $1,008,118 were collected during fiscal year
2009-10. These revenues ended the year at 91.2% of the adjusted budget.
Ambulance Billings — This category ended the fiscal year with $1,312,875 in revenue, or 126% of the adjusted
budget. Compared to last fiscal year, revenues are up 27.3%. The increases can be partially attributed to more ag-
gressive collection of delinquent accounts and increased rates per LA County.
Strike Team — Strike team revenue is received from the Federal and State governments to reimburse the City
for costs the Fire Department incurs when assisting with fires outside of Culver City. Over the course of fiscal year
2009-10, the City received $173,184 in reimbursements.
2007-08 2008-09 2009-10
July 492,823 $ 383,633 $ 491,159 $
August 650,999 477,632 544,206
September 362,493 548,892 529,489
October 325,319 391,456 389,864
Novem ber 363,370 340,259 319,181
Decem ber 620,668 651,720 583,895
January 542,276 348,826 364,357
February 637,743 550,733 401,591
March 481,697 514,353 641,187
April 808,509 973,322 541,072
May 659,808 537,721 443,240
June 764,395 853,688 914,880
TOTAL 6,710,100 $ 6,572,235 $ 6,164,121 $
Adj Budget 5,813,450 $ 6,108,698 $ 6,109,785 $
*Does not include Billings to RDA
Charges for Services*
$0
$1
$2
$3
$4
$5
$6
$7
$8
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
NORMAL
38
ATTACHMENT 2
GENERAL FUND
ONE-TIME REVENUE AND GENERAL FUND RESERVE PERCENTAGE:
11
GENERAL FUND REVENUE ANALYSIS (continued):
The City recorded a significant amount of one-time revenue in the General Fund during fiscal 2007-08 and 2008-09, both from au-
dit activity on various revenues and from significant development activities occurring within the City. Below is a list of one-time
revenue receipts previously received and recorded, fiscal 2007-08 and 2008-09 receipts, and anticipated one-time receipts from
transfers for fiscal 2009-10 and 2010-11. The chart shows the percentage of the General Fund Reserve comprised of these one-
time revenues. The high number of vacancies during fiscal 2007-08, 2008-09 and 2009-10 also contributed to the increase of the
General Fund reserve due to the non-expending of funds for salary and benefit related costs.
It is the policy of the City not to use revenues identified as
one-time funds to pay for recurring expenditures.
TRANSIENT OCCUPANCY TAX THRU JUNE 2010 (Comparison of Fiscal Years 2007-08, 2008-09,
and 2009-10) [Cumulative]
TRANSIENT OCCUPANCY TAX — Revenue totaled $2,963,269 for fiscal year 2009-10 or 104.5% of the
adjusted budget. Revenue was $19,087 higher than the total receipts last year. After a dismal start
to the fiscal year, receipts began improving by the end of the year. Receipts in May 2010 were 42.2% higher than May 2009
and the June 2010 receipts were 38.4% higher than receipts in June 2009. The stabilization of the economy is certainly en-
couraging more leisure and business travel, which is evident in the increases in passenger traffic at LAX. Hotels in other ar-
eas of California have closed due to the recession, but fortunately the major Culver City hotels have managed to weather the
storm.
2007-08 2008-09 2009-10
July 264,908 $ 301,739 $ 247,355 $
August 317,587 187,196 276,575
September 119,733 482,684 234,294
October 322,622 314,886 156,369
Novem ber 231,849 100,824 315,772
Decem ber 219,428 381,912 245,182
January 98,739 118,788 109,029
February 227,660 190,176 284,414
March 216,039 337,622 289,779
April 183,689 248,716 251,431
May 272,733 175,561 249,723
June 242,762 201,647 279,009
Prior Yr Acc (267,833) (364,537) (266,969)
Current Yr Acc 364,537 266,969 291,305
TOTAL 2,814,453 $ 2,944,182 $ 2,963,269 $
Adj Budget 2,500,000 $ 2,850,000 $ 2,837,000 $
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
Dollars in Millions
2007-08 2008-09 2009-10 09-10 Budget
POSITIVE
Major One-time Revenue Receipts
and Estimated One-Time Revenues
1st payment to Warner Lot (05-06) $ 2,620,000
Documentary Tax Audit Receipts (05-06) $ 313,086
Receipts from TOT audit/other (06/07) $ 650,000
Loan Receivable from RDA (06-07) $ 505,818
Int. income from refunding Bonds (06-07) $ 500,000
Documentary Tax Audit Receipts (06-07) $ 762,400
Receipts from Cable UUT Audit (07-08) $ 106,788
Receipts in Com/Ind Dev Tax from signifi-
cant development activity (07-08)
$ 1,757,275
Payment of Interest for Warner Parking Lot
Sale (07-08)
$ 436,608
Building Permit Fee from significant devel-
opment activity (07-08)
$ 533,000
One-time (08-09) [includes final payment
from Warner Parking Lot of $2,947,104.]
$ 3,447,000
Estimated One-time Transfers (09-10) $ 1,800,000
Estimated One-time Transfers (10-11)
$ 810,000
Total from Fiscal 2005-06 $14,241,975
4.1%
3.2%
3.6%
4.1%
2.2%
1.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2005-06 2006-07 2007-08 2008-09 2009-10 est 2010-11 est
% of Unreserved Fund Balance to
Actual and Estimated Expenditures
One-time Revenues per Fiscal Year
39
ATTACHMENT 2
ENTERPRISE FUND
12
REFUSE FUND ANALYSIS:
REFUSE FUND THROUGH JUNE 2010 [Revenues vs. Expenditures — Cumulative]
REFUSE FUND REVENUES — Refuse Fund revenue for fiscal year 2009-10 is 2.0% higher than
last year’s totals. Over 25% of the Refuse Fund’s revenue is comprised of residential refuse disposal
fees, which are billed with property taxes. The City receives the majority of these funds in December and April. Commercial and
multi-family dwelling bin service is billed monthly, and through the end of the fiscal year, revenues totaled 97.6% of the budgeted
projections. Bin service comprises approximately 45% of the 2009-10 Refuse Fund’s budgeted annual revenue amount. Sale of
recyclable items is at 112.2% of the budgeted projections and 22.8% higher than last fiscal year.
Refuse disposal rates were increased by 5% for fiscal 2009-10 to help offset increased personnel costs, as well as operating and
maintenance costs, which include fuels costs and repair and maintenance of equipment.
REFUSE FUND EXPENDITURES — Refuse expenditures for fiscal year 2009-10 were $10,503,516,
or 86.0% of the adjusted budget. The relatively low percentage is attributable to a few factors, which in-
clude lower than expected refuse disposal charges and no expenses for capital projects. Also, there have been vacancies within the
Transfer Station Division, which has contributed to the lower expended percentage.
Expenditures are 3.7% higher than the expenditures at this time last year, in part due to higher annual amortization charges for the
replacement of six refuse trucks and also due to increases in personnel related expenses.
The outstanding loan amount for the Refuse Fund at the end of fiscal 2009-10 is $977,079. Loan payments to the General Fund and
Equipment Replacement Fund continue to be made on schedule.
BELOW BUDGET
Note: Depreciation amounts not included.
2007-08 2008-09 2009-10
July 556,391 $ 611,087 $ 545,695 $
August 634,977 755,594 848,162
September 797,010 733,821 898,687
October 1,023,511 939,413 809,490
Novem ber 902,352 814,124 945,572
Decem ber 753,808 843,596 863,805
January 907,299 838,182 927,631
February 741,930 860,615 817,110
March 1,126,061 1,037,758 852,192
April 983,184 801,923 918,295
May 602,328 624,545 726,546
June 1,219,347 1,265,602 1,350,332
TOTAL EXP 10,248,197 $ 10,126,260 $ 10,503,516 $
Adj Budget $11,524,493 $11,908,814 $12,206,717
Refuse Expenditures
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
Refuse Revenues vs. Expenditures
Fiscal 2009-10
2009-10 Rev 2009-10 Exp
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
Refuse Revenues vs. Expenditures
Fiscal 2008-09
2008-09 Rev 2008-09 Exp
2007-08 2008-09 2009-10
July 696,899 $ 688,909 $ 613,093 $
August 725,514 688,138 656,562
September 640,217 690,235 679,447
October 662,709 645,709 670,945
Novem ber 644,041 649,899 694,072
Decem ber 1,864,241 1,893,806 2,023,083
January 944,572 988,385 920,584
February 953,969 952,691 970,973
March 650,377 631,770 669,691
April 1,382,243 1,539,481 1,522,905
May 947,732 943,220 979,544
June 701,157 647,231 775,627
TOTAL REV 10,813,671 $ 10,959,474 $ 11,176,526 $
Adj Budget 11,483,841 $ 11,541,718 $ 11,629,577 $
Refuse Revenues
NORMAL
40
ATTACHMENT 2
ENTERPRISE FUND
13
TRANSIT FUND ANALYSIS:
TRANSIT FUND THROUGH JUNE 2010 [Revenues vs. Expenditures — Cumulative]
TRANSPORTATION FUND EXPENDITURES – Transportation Fund expenditures totaled $16,697,194
for fiscal year 2009-10. The primary reason for the low expenditure rate, is the fact that 45% of the
budget is allocated toward the purchase of new buses and these capital expenditures will be expended in fiscal year 2010-11
once the buses have been delivered.
At the end of the fiscal year personnel expenses are at approximately 88.5% of adjusted budget, and O & M expenditures are
approximately 88.5% expended.
TRANSPORTATION FUND REVENUES – Transportation Fund revenues are comprised of many
sources, including funding from the County (Metro), State, and Federal government. Also, this
fiscal year the fund began receiving voter approved Measure R funds which is derived from sales taxes. In the first
year, Measure R revenue totaled $1,161,115. For fiscal year 2009-10 Transportation receipts were 51.9% of the
budgeted projections. The revenue percentage is low because the planned purchase of new buses did not take place
in fiscal year 2009-10. Farebox revenue totaled $2,623,403, which is 4.7% higher than the total last year. EZ Pass
revenue exceeded budget projections, totaling $394,220. Additionally, BruinGo program revenue totaled $194,604,
which exceeded budget projections by $76,154.
Note: Depreciation amounts not included.
BELOW BUDGET
-$5
$0
$5
$10
$15
$20
$25
$30
$35
Dollars in Millions
Transit Revenues vs. Expenditures
Fiscal 2009-10
2009-10 Rev 2009-10 Exp
$0
$5
$10
$15
$20
$25
$30
$35
Dollars in Millions
Transit Revenues vs. Expenditures
Fiscal 2008-09
2008-09 Rev 2008-09 Exp
2007-08 2008-09 2009-10
July 1,091,374 $ 838,311 $ 1,178,787 $
August 1,317,488 1,696,863 1,721,272
September 2,080,034 1,198,154 1,192,193
October 2,363,603 1,097,475 1,157,761
Novem ber 1,357,701 1,177,406 1,252,734
Decem ber 2,070,860 1,210,119 1,143,157
January 1,499,769 1,242,695 2,011,183
February 1,092,555 1,294,149 1,268,483
March 1,849,352 1,684,075 1,362,348
April 1,391,409 3,849,603 1,152,493
May 1,728,972 1,470,648 1,205,167
June 4,514,773 2,313,229 2,051,617
TOTAL EXP 22,357,892 $ 19,072,729 $ 16,697,194 $
Adj Budget $22,892,622 $23,681,510 $33,053,578
Transit Expenditures
2007-08 2008-09 2009-10
July (2,648,573) $ 192,803 $ (2,837,763) $
August 2,791,003 438,785 483,439
September 684,306 4,021,856 3,166,171
October 2,541,066 23,882 754,493
Novem ber 224,560 1,407,257 348,660
Decem ber 2,209,509 1,029,098 248,342
January 583,705 1,160,277 249,339
February 791,200 3,445,572 1,041,637
March 3,965,543 494,236 3,066,689
April 1,336,502 (591,373) 2,452,438
May 1,186,439 2,696,572 1,323,135
June 2,430,000 5,880,639 4,838,094
TOTAL REV 16,095,260 $ 20,199,604 $ 15,134,673 $
Adj Budget 17,279,756 $ 20,591,546 $ 29,183,264 $
Transit Revenues
NEGATIVE
41
ATTACHMENT 2SEWER OPERATING EXPENDITURES – Sewer Operating expenditures for fiscal year 2009
-10 totaled $6,708,119 which is 72.5% of the adjusted budget. This does not include capital
improvement expenditures for sewer projects. (Further information on sewer CIP projects can be found on page 17.)
Personnel expenditures for the year are approximately 88.6% of the budgeted projections. Operating and Mainte-
nance expenditures are approximately 82.6% of adjusted budget. The low O&M expenditure rate is primarily due to
lower than expected billings from the City of Los Angeles. The City of Los Angeles bills Culver City for use of the Hy-
perion wastewater treatment plant. All other sewer operating expenditures are within normal target percentages for
this time period.
SEWER OPERATING REVENUES – Sewer operating revenues through the end of the fiscal
year are $9,903,908 or 110% of budgeted projections. Revenues exceeded fiscal 2008-09
totals by 3.6%. Sewer Operating Charges comprise approximately 89% of the sewer operating revenue projections.
The Sewer Fund has increased Sewer Operating Charges annually for the last several fiscal years, but the rates did
not increase in fiscal 2009-10.
Note: Depreciation amounts not included.
BELOW BUDGET
NORMAL
2007-08 2008-09 2009-10
July 62,020 $ (248,863) $ (220,526) $
August 135,999 1,355,165 290,032
September 1,667,451 249,451 1,051,492
October 196,867 324,357 788,879
Novem ber 505,602 209,264 567,522
Decem ber 217,876 246,201 359,752
January 575,351 213,056 568,886
February 259,361 282,394 440,116
March 1,293,387 883,641 1,211,373
April 206,841 208,212 207,532
May 579,381 222,710 511,658
June 384,863 735,119 931,403
TOTAL EXP 6,084,996 $ 4,680,705 $ 6,708,119 $
Adj Budget $7,534,793 $8,438,444 $9,255,764
Sewer Op Expenditures
-$2
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
Sewer Operating Rev vs. Exp
Fiscal 2008-09
2008-09 Rev 2008-09 Exp
-$2
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
Sewer Operating Rev vs. Exp
Fiscal 2009-10
2009-10 Rev 2009-10 Exp
2007-08 2008-09 2009-10
July (143,668) $ (176,400) $ (207,414) $
August 191,068 225,683 128,406
September 194,194 80,197 263,100
October 125,966 115,369 158,867
Novem ber 163,135 157,384 581,529
Decem ber 3,478,540 3,626,697 3,321,109
January 1,075,632 975,864 888,944
February 1,248,540 846,395 888,745
March 270,581 74,241 42,011
April 2,191,521 2,386,108 2,240,612
May 1,027,938 1,028,117 771,895
June 590,758 223,162 826,105
TOTAL REV 10,414,205 $ 9,562,817 $ 9,903,908 $
Adj Budget 9,121,750 $ 9,897,337 $ 8,970,000 $
Sewer Op Revenues
ENTERPRISE FUND
SEWER FUND ANALYSIS:
SEWER OPERATING FUND THRU JUNE 2010 [Revenues vs. Expenditures — Cumulative]
14
42
ATTACHMENT 2
INTERNAL SVCS FUNDS
15
INTERNAL SERVICE FUND ANALYSIS:
EQUIPMENT MAINTENANCE & FLEET SERVICES FUND THROUGH JUNE 2010 [Revenues vs. Ex-
penditures — Cumulative]
EQUIPMENT MAINTENANCE FUND EXPENDITURES — Overall Equipment Maintenance & Fleet
Services (EM&FS) expenditures through the end of the fiscal year are $6,822,568 or 91.4% of the
adjusted budget. Personnel related expenditures are approximately 101.6% expended, and operating and maintenance is
approximately 80.7% expended. Lower than expected fuel costs attributed to the low O&M expenditure rate. Petroleum
Products (fuel), makes up approximately 50% of the operating and maintenance budget, was 71% expended
EM&FS continues to maintain the City’s entire fleet of vehicles and equipment, which includes public safety (police cars and
fire trucks), buses, sanitation vehicles, regular passenger vehicles and many other miscellaneous types of equipment. Al-
most all expenses (labor, equipment, fuel, etc.) are charged back to the user departments. Staff monitors the charge-backs
closely to ensure all expenses are recognized.
EQUIPMENT MAINTENANCE FUND REVENUES — Equipment Maintenance & Fleet Services reve-
nues for fiscal year 2009-10 are $6,729,663, or 90.5% of adjusted budget projections. The goal of
an Internal Service Fund is for revenues to match the actual expenditures at the end of a fiscal year and in this case, the
expenditures exceeded the revenues by 1.4%. As mentioned above, charge-outs for this fund are monitored to ensure en-
tries between expenditures and revenues are closely matched so that the fund recognizes all receipts due to it.
NORMAL
$0
$1
$2
$3
$4
$5
$6
$7
$8
Dollars in Millions
Equipment Maintenance & Fleet Services
Revenue vs. Expenditure - Fiscal 2009-10
2009-10 Rev 2009-10 Exp 2007-08 2008-09 2009-10
July 291,739 $ 426,475 $ 320,479 $
August 491,369 819,663 609,971
September 729,168 572,292 558,293
October 578,562 580,038 525,566
Novem ber 484,018 505,847 564,757
Decem ber 516,927 519,560 513,863
January 537,330 498,798 701,327
February 599,590 567,648 564,397
March 688,197 651,833 577,678
April 594,281 518,712 517,784
May 541,520 476,180 538,244
June 844,455 860,955 830,209
TOTAL EXP 6,897,156 $ 6,998,001 $ 6,822,568 $
Adj Budget 6,870,800 $ 7,206,621 $ 7,466,942 $
EM&FS EXPENDITURES
2007-08 2008-09 2009-10
July 509,682 $ 577,353 $ 371,724 $
August 681,772 555,946 518,275
September 515,434 565,109 705,573
October 613,361 564,228 628,134
Novem ber 500,468 454,692 520,489
Decem ber 708,215 517,271 553,943
January 601,120 480,335 535,738
February 415,889 482,969 566,133
March 673,935 527,149 605,660
April 551,152 627,057 568,635
May 419,811 607,321 510,272
June 697,581 774,337 645,087
TOTAL REV 6,888,420 $ 6,733,767 $ 6,729,663 $
Adj Budget 6,966,954 $ 7,585,747 $ 7,434,982 $
EM&FS REVENUES
$0
$1
$2
$3
$4
$5
$6
$7
$8
Dollars in Millions
Equipment Maintenance & Fleet Services
Revenue vs. Expenditure - Fiscal 2008-09
2008-09-Rev 2008-09-Exp
NORMAL
43
ATTACHMENT 2SELF-INSURANCE FUND REVENUES — Internal service charges for the Self Insurance Fund
are developed annually based on the projected expenses for the fiscal year and are allocated to
each operating division based on a five-year experience rating. The amount is charged monthly at relatively equal incre-
ments throughout the fiscal year. Receipts for fiscal 2009-10 are 104.7% of adjusted budget projections.
Revenue in fiscal year 2009-10 exceeded expenditures by approximately $829,390, which helped the fund balance recover
to a more appropriate level. The Self-Insurance Fund ended the fiscal year with a fund balance of approximately $5.8M.
INTERNAL SVCS FUNDS
16
INTERNAL SERVICE FUND ANALYSIS:
SELF-INSURANCE FUND THROUGH JUNE 2010 [Revenues vs. Expenditures — Cumulative]
SELF-INSURANCE FUND EXPENDITURES — For fiscal year 2009-10 Self Insurance Fund
total expenditures were at 97.3% of adjusted budget. For the Premiums/Claims Division of the
Self Insurance Fund expenditure were at 98.6% of the budget.
The primary function of the Self Insurance Fund is to pay insurance and claims costs for the City’s General Liability,
Workers’ Compensation, and Property programs. In any given year, there are often spikes in expenditures that result
from a judgment or settlement of a particular claim. In fiscal year 2007-08 the Self-Insurance Fund paid $3.6 million for
the Cranks hillside repair. This left the fund with a low balance, but since then the fund balance has steadily increased.
NORMAL
$0
$2
$4
$6
$8
$10
$12
Dollars in Millions
SIF Revenues vs. Expenditures
Fiscal 2009-10
2009-10 Rev 2009-10 Exp
2007-08 2008-09 2009-10
July 582,737 $ 547,878 $ 608,579 $
August 623,861 687,329 644,262
September 622,582 720,886 649,700
October 626,233 642,585 649,288
Novem ber 624,557 643,281 658,954
Decem ber 648,313 663,575 872,660
January 630,713 644,827 651,112
February 616,418 641,495 660,976
March 655,223 638,457 646,469
April 589,086 1,518,184 657,218
May 613,407 648,673 649,273
June 840,446 684,320 740,966
TOTAL REV 7,673,576 $ 8,681,490 $ 8,089,456 $
Adj Budget 7,274,613 $ 7,530,015 $ 7,728,178 $
SIF Revenues
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Dollars in Millions
SIF Revenues vs. Expenditures
Fiscal 2008-09
2008-09 Rev 2008-09 Exp
2007-08 2008-09 2009-10
July 58,341 $ 1,405,609 $ 1,657,688 $
August 1,916,546 557,547 345,110
September 470,758 294,637 463,282
October 366,042 469,756 596,356
Novem ber 559,913 436,980 300,869
Decem ber 199,417 357,415 472,112
January 977,875 198,315 732,797
February 127,968 337,424 392,382
March 686,842 237,636 923,429
April 457,858 250,746 309,547
May 581,710 461,235 650,590
June 4,338,515 532,676 415,906
TOTAL EXP 10,741,785 $ 5,539,976 $ 7,260,066 $
Adj Budget 11,072,650 $ 7,449,167 $ 7,463,283 $
SIF Expenditures
NORMAL
44
ATTACHMENT 2
Total Budget
Funding Source
Expended
to Date
Expected
Completion
1. Fire Station #3 $6,527,000 54% - Gen Fund Capital
46% - RDA Bond
$5,068,803 Near Completion
2. Sewer Projects (Bradock and Fox Hills
Pump Stations and Sewer Rehab P873/P906)
$7,279,622 100% Sewer Fund $0 On-going projects
3. Stormwater Discharge Program/NPDES
(P497)
$2,747,881 59% - Grants Capital
41% - Gen Fund Capital
$237,966 On-going project
to establish funds
for state mandate
4. Fox Hills Area Traffic Signal Synch Project
(P852)
$2,033,500 73% - Grants Capital
11% - Special Gas Tax
9% - Developer Mitigation
7% - Gen Fund Capital
$1,457,189 Near Completion
5. Telephone and Network Replacement
(P906)
$1,239,332 100% - Gen Fund Capital $1,058,423 Near Completion
CAPITAL PROJECTS
17
CAPITAL PROJECTS:
TOP 5 CAPITAL PROJECTS (by total budget)
CAPITAL IMPROVEMENT EXPENDITURES BY CATEGORY
NOTABLE ACTIVITY:
During fiscal year 2009-10, many significant capital projects were completed or
are nearing completion. These include Fire Station #3, the Firing Range, the
Public Safety CAD/RMS/MDT project, and the Fox Hills Area Traffic Signal
Synchronization Project, and Phase I of the Residential Overlay Program.
Also during fiscal 2009-10, the City went live on the new telephone and net-
work system. During the fiscal year, a pilot program for a new parking payment
system was initiated on Main St. The pilot program will be completed during
fiscal yea r 2010-11 and based on the results it could be expanded to other
parking meter areas.
Due to the state’s budget problems, some Public Works projects, such as
Phase II of the Residential Overlay Program were delayed due to the state
withholding funding. Also, Gas Tax funds, which are normally received
monthly, were delayed until April due to the State’s cash flow issues and
budget problems.
MAJOR CIP FUNDING SOURCES
Adjusted
Budget
Expended to
Date Major Projects:
Street & Alley Improvements $2,527,675 $1,290,381 Residential Paving, Carson St, Sepulveda Blvd
Traffic Signal & Lighting Improvements $2,933,444 $998,545 Fox Hills ATSS
Bridge Improvements $0 $0 No projects at this time
Parking Improvements $34,639 $33,823 Parking Meter Repair/Replacement
Community Improvements $1,803,156 $717,225 Art Fund Projects, Ballona Creek
Parks & Park Facility Improvements $1,327,705 $356,357
Parks Assessment, Park Equip Repair, Culver West
Park Rehab
Police & Fire Improvements $5,779,286 $3,114,010 Fire Station #3, CAD/RMS/MDT, Firing Range
Sewer & Storm Drain Improvements $5,150,000 $1,917,728 Sewer Line Replacement, Pump Station Improve
Other Facility & Equipment Improvements $3,979,254 $1,461,005 Cranks Slope Repair, Other City Bldg Repairs
Gen
Fund
Capital
45%
Enter.
Funds
20%
Grants
Capital
18%
Special
Gas Tax
4%
Art
Fund
5%
Asset
Seizure
4%
Other
4%
Total $25,194,528
45
ATTACHMENT 2
OTHER FUNDS
18
OTHER FUND ANALYSIS:
FUND ANALYSIS FOR OTHER FUNDS THROUGH JUNE 2010:
PARKING MAINTENANCE FUND — Receipts for fiscal year 2009-10 are only at 68.6% of
the adjusted budget. The primary reason the fund is behind projections is because the budget
was increased this year to account for potentially higher parking meter rates. A rate increase from 50 cents to 1
dollar per hour was approved by City Council and the increase was fully implemented in October 2009. Unfortu-
nately, the parking meter rate increases have not led to the revenue increases that were projected. Further analysis
will need to be done to identify the exact issue. A portion of Parking Maintenance revenues are transferred to the
General Fund each year to pay for street related maintenance work. Expenditures (other than transfers) can be
found in the CIP section on Page 17.
OPERATING GRANTS FUND — Through the end of the fiscal year, Operating Grants reve-
nues are $573,209 below expenditures. It is normal for reimbursements not to line up on a
month-to-month basis during the fiscal year due to timing issues of reimbursements. Each grant is analyzed sepa-
rately and final match-ups between revenues and expenditures will be reported at the end of the fiscal year. This
fund is made up of operating grants that include Senior Nutrition, RSVP, and DUI Enforcement grants, among oth-
ers.
CAPITAL GRANTS FUND — During fiscal year 2009-10, the City received $2,587,957 of
Capital Grant funds and $2,421,565 in funds were expended. Capital grant funded projects
include: residential overlay, Culver Boulevard repaving, Fox Hills traffic signal synchronization, and Veteran’s Park
playground. The City does not appropriate any Capital Grant funds unless a signed letter authorizing the receipt of
the grant funds from the authorizing agency has been received.
EQUIPMENT REPLACEMENT FUND (ERF) — The ERF continues to maintain a healthy
balance and is able to fund emergency replacements when needed. During fiscal year 2009-
10, three Paratransit buses, five Police vehicles, three Parks vehicles, one Fire vehicle, one
Community Development vehicle, and two Public Works vehicles will be replaced. Funding is reimbursed to the
fund monthly by Departments through an amortization schedule that ensures adequate replacement funding is
available for vehicles at the end of their useful lives. (Note: Prop A Grant Funds were also used to pay for a portion
of the Paratransit buses.)
SPECIAL GAS TAX (HIGHWAY USERS TAX) — Gas tax revenue ended the fiscal year at
95.2% of the budgeted projections. Due to cash flow issues, during the year the State de-
layed the November thru March payments until April. The Gas Tax Fund is comprised of revenue from taxes on
every gallon of gas sold in the City. When the price of gasoline goes up, this amount stays constant and can only
be changed per legislative action. The tax has remained unchanged since 1994. Page 17 identifies some CIP pro-
jects funded with Gas Tax funds.
ARTS IN PUBLIC PLACES — At the end of the fiscal year, Art Fund receipts totaled
$107,252. Of that amount, $83,148 was from Art in Public Places development fees and the
remainder was interest, which is allocated internally based on fund balances. The Art Fund is funded when devel-
opers elect not to fulfill the City’s public art requirement and instead pays a fee of 1% of the total building cost. This
funding is a special revenue source and can only be used for Public Art purposes and no funding is ever appropri-
ated above the amount available.
PARKS FACILITY FUND (QUIMBY FEES) — Through the end of the fiscal year, $189,692,
in payments have been received. This is a special revenue that can only be used for parks
related projects. The revenue in this fund is erratic because it is dependent on new residential development of four
or more units and each year only a handful of developments fall into this category. Previously, this fund’s annual
revenue has ranged from $4,200 to $225,000.
NORMAL
NEGATIVE
NEGATIVE
POSITIVE
POSITIVE
NEGATIVE
NORMAL
46
ATTACHMENT 2FINANCIAL
FINANCIAL
MONITORING
MONITORING
REPORT
REPORT
CURRENT MONTH YEAR TO DATE PAGE
Notable News and Activity Page 2
Fund Balances Available for Projects and Programs Page 3
Unrestricted Funds
Revenues and Expenditures Summary NORMAL NORMAL Page 3
Expenditure Overview BELOW BUDGET BELOW BUDGET Page 4
Expenditures by Category
NORMAL
BELOW BUDGET
NORMAL
BELOW BUDGET
Page 4-6
Revenue Overview NORMAL NORMAL Page 7
Assessed Valuations NEGATIVE NEGATIVE Page 8
Tax Increment Revenue Overview POSITIVE POSITIVE Page 8
Tax Increment by Project Area POSITIVE POSITIVE Pages 8-9
Other Revenues
POSITIVE
NEGATIVE
POSITIVE
NEGATIVE
Page 10-11
Housing Funds
Housing Fund (Expenditures/Revenues) NORMAL NORMAL Page 12
Tax Exempt Bond Fund
Tax Exempt Bond Fund (Expenditures/Revenues) NORMAL NORMAL Page 13
PERFORMANCE AT A GLANCE
Prelim Year End FY 2009-10
POSITIVE or
BELOW BUDGET
= Revenues greater than 5% ABOVE Adjusted Budget; or
Expenditures greater than 5% BELOW Adjusted Budget
NORMAL
= Actual within 5% of Adjusted Budget
NEGATIVE or
EXCEED BUDGET
= Revenues greater than 5% BELOW Adjusted Budget; or
Expenditures greater than 5% ABOVE Adjusted Budget
MIXED or
WARNING
= Category contains both positive and negative financial results; or
Financial activity currently normal; however, there are potential factor(s) that may impact future financial activity
REDEVELOPMENT
AGENCY
47
ATTACHMENT 3
Fiscal Year 2009-10
AT-A-GLANCE
Economic Overview
The National Bureau of Economic Research, which is the non profit
agency responsible for defining economic cycles, declared June 2010
to be the official end of the recession. Statistically, the recession that
plagued the U.S. economy for the last two years is over (i.e. the econ-
omy has stopped contracting and has sustained a few consecutive
quarters of growth); However, as a practical matter, the U.S. economy
is still very much in a recession as foreclosures remain near record
highs, credit continues to be very tight, the stock market has been ex-
tremely volatile, and unemployment remains uncomfortably high.
Locally, the Culver City Redevelopment Agency received the FY 2010-
11 assessed value report from the Los Angeles County Assessor’s Of-
fice in August. That report shows a 3% decline in assessed values in
the Redevelopment Project Areas, which represents the first DECLINE
in values in recent memory. Consequently, tax increment revenues in
the upcoming fiscal year are not expected to experience any growth.
As the economic conditions play out, staff is remaining conservative
and holding the line on expenditures in as many areas as possible in
anticipation of slower tax increment growth in the near future.
Revenue & Expenditure Summary
The RDA finished FY 2009-10 with a surplus as revenues exceeded ex-
penditures by approximately $2.6 million. Although tax increment
revenues decreased slightly (about 2% lower in FY 2009-10 than in FY
2008-09), strong revenues from Pacific Theaters and RDA controlled
parking offset that decrease. Overall, revenues increased by approx.
2% from FY 2008-09.
Expenditures increased by approximately 7% in FY 2009-10. Although
expenditures increased, they were still less than revenues due primar-
ily to the impact the economy is having on development in the City.
There are a number of projects that have been on hold for the last few
years, keeping RDA expenditures relatively low. It is also important to
note that the required $11 million SERAF payment was from the
Low/Moderate Income Housing Fund. RDA expenditures are expected
to increase over the next few years as development picks up and the
ERAF/SERAF loans are repaid to the Low/Moderate Income Housing
Fund.
2
Notable News
Supplemental Education Revenue
Augmentation Fund & CRA Lawsuit
The adopted 2009-10 State budget included
another attempt to take redevelopment funds.
Previously, the State tried to take redevelop-
ment funds in FY 2008-09 through an ERAF
shift. The California Redevelopment Associa-
tion (CRA) subsequently filed a lawsuit on the
basis that redevelopment funds were protected
by Prop 1A. The CRA lawsuit was successful and
County Auditors were blocked from collecting
that ERAF payment from redevelopment agen-
cies. The State initially filed an appeal, but has
since dropped the suit, making the ruling final.
Culver City Redevelopment Agency’s FY 2008-
09 ERAF obligation would have been $2.25 mil-
lion.
The FY 2009-10 take was written slightly differ-
ent from the FY 2008-09 version; however, CRA
still believed that the take was unjustified un-
der the State Constitution and filed another
lawsuit. On May 4, the Sacramento Superior
Court issued an adverse ruling and determined
that the shifting of redevelopment funds does
not violate the State Constitution. The CRA has
since filed an appeal of this decision, however,
the RDA was still obligated to pay $11 million
into the Supplemental Education Revenue Aug-
mentation Fund (SERAF) by May 10, 2010,
which it did. Due to financial necessity, the RDA
was able to borrow this payment from the
available balance in the Low/Moderate Income
Housing Fund. These funds must be repaid in
full within 5 years.
Another SERAF payment of $2.2 million is due
in May 2011. CRA is still hopeful that their ap-
peal of the Sacramento Superior court decision
will be successful. Unfortunately, until the mat-
ter is resolved, the Agency will be obligated to
make that SERAF payment.
Staff will keep the Agency Board updated on
the status of the CRA’s lawsuit.
Notable Development News
• The credit crunch continues to impact
financing as many of Culver City’s devel-
opment projects continue to have diffi-
culty securing project financing.
• The Sepulveda Streetscape and Washing-
ton Blvd Area Improvement Plans are
moving forward in an effort to spur rede-
velopment in the western portion of the
City.
48
ATTACHMENT 3
RDA BUDGET REPORT
3
CASH AVAILABLE for CAPITAL INVESTMENT
FUND BALANCE AVAILABLE FOR PROJECTS/PROGRAMS:
UNRESTRICTED REVENUE and EXPENDITURE SUMMARY: ( graphs are cumulative)
For FY 2010-11, revenues outpaced expenditures by approximately 6.5%, resulting in a surplus of approximately $2.6 million.
REVENUES: Tax Increment revenues were down about 2%, but strong revenue from Pacific Theater and RDA controlled parking
helped offset the drop off in tax increment receipts. Revenues are discussed in more detail on pages 7—11.
EXPENDITURE: The Agency’s largest single annual expenditure is Debt Service, i.e. principal and interest payments made on all out-
standing bond debts. This payment is made annually in November. Other expenditures are primarily related to administrative ex-
penditures (including salary and benefits reimbursement to the City) and RDA programs/projects. With many RDA projects stalled
due to economic conditions, expenditures in FY 2010-11 were relatively low.
More detail on revenues and expenditures can be found in the following sections of this report.
The estimated ending balance for each fund represents the approximate amount of cash capital available for investment in new
projects or programs.
Assumptions: The estimated ending balances above assume that the remaining $3.5 million loan from the City will be repaid in FY 2010-11,
$2.5 million per year will be repaid to the Housing Fund through FY 2015-16 to repay the outstanding ERAF/SERAF loans, and the FY 2010-11
SERAF payment ($2.252M) will be made from Unrestricted Funds. Fund Balance assumes 100% of the adjusted FY 2010-11 and FY 2011-12
budgets are expended, and $9.8 million in land sale proceeds in FY 2011-12.
NORMAL
Actual Estimated Estimated Projected
Ending Ending Ending Ending
2008-09 2009-10 2010-11 2011-12
Unrestricted Funds 16,440,000 19,000,000 11,000,000 24,000,000
Housing Set Aside 24,875,000 17,835,000 21,075,000 14,300,000
Tax Exempt Bonds - 1999 4,902,000 00 0
Tax Exempt Bonds - 2002 15,852,000 2,094,000 940,000 0
TOTAL RESOURCES $62,069,000 $38,929,000 $33,015,000 $38,300,000
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
Millions
Cumulative RDA Revenues & Expenditures
2009-10 Revenue 2009-10 Expenditure
2009-10
Revenue
2009-10
Expenditure
Jul 137,186 $ 577,267 $
Aug 392,499 543,844
Sep 847,690 752,634
Oct 253,374 672,468
Nov 4,321,193 11,973,102
Dec 12,006,835 5,877,824
Jan 2,065,235 1,162,533
Feb 4,289,209 4,241,462
Mar 1,042,747 1,442,955
Apr 7,989,494 2,569,489
May 6,450,276 5,846,939
Jun 3,830,627 5,304,504
TOT Y-T-D 43,626,365 40,965,021
Adj Budget 40,951,280 44,841,279
49
ATTACHMENT 3
RDA BUDGET REPORT
4
UNRESTRICTED FUND EXPENDITURES:
TOTAL UNRESTRICTED FUNDS EXPENDITURES: (graph is cumulative)
ADMINISTRATIVE EXPENSES: (graph is cumulative)
EXPENDITURE ANALYSIS BY CATEGORY:
In FY 2009-10, the RDA expended approximately 91% of the adjusted budget compared to 87% in
2008-09 and 92% in 2007-08. Total Agency expenditures were approximately $4.2 million under
budget. The following sections will provide more detailed discussion on RDA expenditures by category.
NOTE: RDA expenditures are relatively sporadic on a monthly basis as there are often spikes in expenditures due to land acquisition costs or
other one-time development/project related costs. Generally, the month of November has the most cash going out the door to pay annual debt
service payments for RDA bonds.
In FY 2009-10, approximately 83% of the total Admin budget has been expended, compared to 79% last
fiscal year. As expected, the Agency finished the year below budget in admin expenses due to vacant po-
sitions that were frozen and some contract services coming in under budget.
NOTE: The RDA reimburses the City for staff positions that are impacted by RDA activities (i.e. positions in Planning, Building Safety,
Code Enforcement, City Attorney, Police, Fire, PRCS, Public Works, etc.). Admin expenditures also include operating expenses and
contract costs for RDA activities. Reimbursement expenses for staff positions are prorated and transferred from the Agency to the
City on a monthly basis with a “true up” adjustment at the end of the fiscal year to reflect actual costs.
BELOW BUDGET
BELOW BUDGET
2007-08 2008-09 2009-10
Jul (49,291) $ (61,504) $ 577,267 $
Aug (22,671) 229,232 543,844
Sep 4,950,808 1,799,685 752,634
Oct 282,921 2,559,746 672,468
Nov 13,049,104 12,656,746 11,973,103
Dec 5,526,036 4,245,202 5,877,824
Jan 1,602,987 1,250,661 1,162,533
Feb 1,441,268 1,627,557 4,241,463
Mar 1,279,876 366,879 1,442,955
Apr 2,277,211 2,397,095 2,569,489
May 5,313,400 6,472,168 5,846,940
Jun 3,545,668 1,459,314 5,304,499
TOT Y-T-D 39,197,317 35,002,781 40,965,019
Adj Budget 42,726,758 $ 40,131,060 $ 45,141,279 $
$(5)
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Millions Total RDA Expenditures
2007-08 2008-09
2009-10 2009-10 Budget
2007-08 2008-09 2009-10
Jul (118,918) $ 100 $ 521,492 $
Aug 23,471 54,109 397,464
Sep 87,185 1,187,627 500,189
Oct 153,831 410,334 497,832
Nov 14,318 451,089 516,974
Dec 2,248,339 485,523 534,360
Jan 596,748 499,294 482,801
Feb 461,430 446,170 688,525
Mar 456,443 451,826 486,622
Apr 438,066 464,350 428,713
May 439,925 464,337 449,572
Jun 553,815 375,878 320,004
TOT Y-T-D 5,354,653 5,290,637 5,824,548
Adj Budget 6,126,231 6,738,765 7,049,836
$(1)
$-
$1
$2
$3
$4
$5
$6
$7
$8
Millions
Administrative Expenses
2007-08 2008-09
2009-10 2009-10 Budget
50
ATTACHMENT 3
RDA BUDGET REPORT
GENERAL OBLIGATION EXPENSES: (graph is cumulative)
UNRESTRICTED FUNDS EXPENDITURE ANALYSIS:
In FY 2009-10, Economic Development, Property Management, and Cultural Affairs programs ex-
pended 53% of the adjusted budget compared to 43% in 2008-09 and 54% in 2007-08. The primary
expenditures are related to costs to manage the downtown parking structures and Cultural Affairs programs. Also, despite uncer-
tainty in the economy, there has been an increase in local business taking advantage of rehabilitation and fee incentive programs
and increased interest in business assistance loans offered by the Economic Development Division. This may signify a return in
confidence by local entrepreneurs.
NOTE: Economic Development/Cultural Affairs programs include expenses for economic development projects, real property management, and
Cultural Affairs programs such as the Culver City Music Festival, Farmers’ Market, Music in the Chambers, and the Art of… Speaker Series.
ECON DEV/PROPERTY MANAGEMENT/CULTURAL AFFAIRS PROGRAMS: (graph is cumulative)
5
In FY 2009-10, the RDA expended 100% of the adjusted General Obligations budget, compared to 101%
in 2008-09 and 98% in 2007-08. General Obligation expenses include bond debt service, principle and in-
terest payments on loans, and statutory pass through payments. These payments follow a schedule and are known at the begin-
ning of the year.
General Obligation expenses are payments that the Agency is legally required to make, such as debt service on RDA bond issues (paid
each year in November), statutory pass through payments, transfers to the Housing fund for the 20% statutory housing set aside, and
ERAF payments (when applicable).
BELOW BUDGET
2007-08 2008-09 2009-10
Jul 81,994 $ (65,252) $ (36,538) $
Aug (81,994) 76,724 36,538
Sep 1,334,270 - -
Oct - 1,449,487 -
Nov 10,648,686 12,093,795 11,213,330
Dec 2,937,420 3,560,587 3,664,287
Jan 393,052 593,235 450,550
Feb 873,941 1,056,892 3,361,386
Mar 738,546 (193,495) 704,580
Apr 1,611,638 1,794,007 1,922,397
May 4,712,379 5,887,151 5,198,995
Jun 1,280,618 733,207 4,593,126
TOT Y-T-D 24,530,550 26,986,338 31,108,651
Adj Budget 25,131,668 26,606,359 31,053,227
$(5)
$-
$5
$10
$15
$20
$25
$30
$35
Millions
General Obligation Expenses
2007-08 2008-09
2009-10 2009-10 Budget
2007-08 2008-09 2009-10
Jul (12,367) $ 1,959 $ 89,884 $
Aug 30,581 69,921 108,825
Sep 107,866 252,049 220,134
Oct 111,624 143,262 167,156
Nov 74,236 104,898 233,447
Dec 296,671 151,627 121,204
Jan 171,609 150,078 225,898
Feb 82,655 120,612 191,531
Mar 78,485 109,562 251,392
Apr 120,448 128,617 183,498
May 134,492 115,826 196,163
Jun 496,806 327,029 293,204
TOT Y-T-D 1,693,106 1,675,440 2,282,336
Adj Budget 3,118,088 3,863,106 4,273,768
$(500)
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Thousands
Ecomomic Development
Cultural Affairs
2007-08 2008-09
2009-10 2009-10 Budget
NORMAL
51
ATTACHMENT 3
RDA BUDGET REPORT
CURRENT PROJECTS: (graph is cumulative)
UNRESTRICTED FUNDS EXPENDITURE ANALYSIS:
Due primarily to economic conditions, there was no activity in this category in FY 2009-10. Potential
Projects include expenses for opportunity sites as they arise in various parts of the City, such as poten-
tial sites on Selmaraine Ave, Jefferson Blvd and the Hayden Tract. Typical expenses in this category are on appraisals, explora-
tory studies, and other expenses related to evaluating a potential redevelopment site.
NOTE: The spike in expenditures in June 2008 is related to the Tapp option exercised by the Agency to purchase land related to the Pleasant-
view project. Pleasantview is now considered a Current Project.
POTENTIAL PROJECTS: (graph is cumulative)
6
In FY 2009-10, expenditures in this category were primarily related to the Pleasantview project. When
the Agency purchased the Pleasantview site in 2006, they negotiated payment terms in which the
Agency paid a little more than half of the total purchase price upon close of escrow with the balance due in 2009. The $1.6 million
payment made in December represents the Agency’s fulfillment of that note.
NOTE: “Current Projects” are projects that are currently underway, such as Washington/Centinela, Washington/National, Pleasantview,
and the Baldwin Site. Property acquisition and site preparation costs are included in the Current Projects category and typically make up
the primary expenditure. Current Project expenditures are not typically consistent throughout the year.
2007-08 2008-09 2009-10
Jul - $ - $ - $
Aug 425 1,078 -
Sep - 7,336 -
Oct 1,170 2,335 -
Nov - 588 -
Dec 5,726 37 -
Jan 65,347 4,031 -
Feb - 1,563 -
Mar - 327 -
Apr - 1,291 -
May - 21 -
Jun 1,131,104 56 -
TOT Y-T-D 1,203,772 18,663 -
Adj Budget 1,264,274 514,774 35,967
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Thousands
Potential Projects 2007-08 2008-09
2009-10 2009-10 Budget
BELOW BUDGET
BELOW BUDGET
2007-08 2008-09 2009-10
Jul - $ 1,689 $ 2,429 $
Aug 4,846 27,400 1,017
Sep 3,421,487 352,673 32,311
Oct 16,296 554,328 7,480
Nov 2,311,864 6,376 9,352
Dec 37,880 47,428 1,557,973
Jan 376,231 4,023 3,284
Feb 23,242 2,320 21
Mar 6,402 (1,341) 361
Apr 107,059 8,830 34,881
May 26,604 4,833 2,210
Jun 83,325 23,144 98,165
TOT Y-T-D 6,415,236 1,031,703 1,749,484
Adj Budget 7,086,497 2,408,056 2,728,481
$-
$1
$2
$3
$4
$5
$6
$7
Millions
Current Programs/Projects
2007-08 2008-09
2009-10 2009-10 Budget
52
ATTACHMENT 3
RDA BUDGET REPORT
7
UNRESTRICTED FUNDS REVENUE ANALYSIS
TOTAL UNRESTRICTED FUNDS REVENUE:
SUMMARY — Overall, revenues were relatively strong in FY 2009-10. Tax Increment revenues exceeded budget projec-
tions, but were slightly less than in FY 2008-09. Revenues from Pacific Theaters significantly exceeded budget projections and the
Farmer’s Market and parking revenues met budget projections.
TAX INCREMENT REVENUES — As previously noted, although tax increment revenues slightly exceeded budget projections,
receipts were down approximately 2% from last fiscal year. Additionally, the Redevelopment Agency received an updated As-
sessed Valuation Report from the County Assessor in August 2010 for FY 2010-11. The updated report indicates a 3% decrease in
assessed values. Based on this updated AV report, estimated tax increment revenues for FY 2010-11 may be less than originally
projected. More information will be provided during the FY 2010-11 mid-year budget review.
LAND SALE PROCEEDS — Due to the continuing credit crunch and significant slowdown in commercial and residential devel-
opment, no land sale proceeds were received in FY 2009-10. The Agency continues to hold a number of parcels that are subject to
DDAs. When the economy recovers and development activity resumes, the Agency may realize some land sale proceeds.
City Loan to the Agency — The $9 million loan was originally meant to be repaid using land sale proceeds from a number of par-
cels owned by the RDA and subject to a DDA with a developer to dispose of the land. Due to the recession, receipt of those pro-
ceeds have been delayed. Therefore, the City has extended the terms of the loan through June 2011. The Agency made a $4
million payment in June 2010, leaving an outstanding loan balance of $3.5 million at FYE 2009-10. The final principal payment
will be made in June 2011.
2007-08 2008-09 2009-10
Jul (395,530) $ 29,131 $ 137,186 $
Aug 656,599 782,065 392,499
Sep 368,304 399,899 847,690
Oct 415,202 356,216 253,374
Nov 3,676,946 4,841,495 4,321,193
Dec 9,651,356 11,134,413 12,006,835
Jan 1,965,506 2,200,152 2,065,235
Feb 3,912,079 4,585,415 4,289,209
Mar 1,378,423 240,077 1,042,747
Apr 6,434,458 7,646,268 7,989,494
May 4,831,876 8,312,240 6,450,276
Jun 3,042,264 2,182,718 3,830,627
TOT Y-T-D 35,937,483 42,710,089 43,626,365
Adj Budget 33,006,077 42,950,77540,951,280
$(5)
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Millions
RDA Total Revenues
2007-08 2008-09
2009-10 2009-10 Budget
53
ATTACHMENT 3
RDA BUDGET REPORT
8
UNRESTRICTED FUNDS REVENUE ANALYSIS (continued):
TAX INCREMENT: Fiscal 2007-08, 2008-09 and 2009-10 (graph is cumulative)
ASSESSED VALUATIONS: Fiscal 2008-09, 2009-10, and 2010-11
In FY 2009-10, tax increment revenues slightly exceeded budget projections. However, revenues decreased
by approximately 2% from FY 2008-09. Additionally, based on a recent Assessed Valuation Report from
the LA County Assessor, tax increment receipts are expected to slightly decrease again this fiscal year. As noted in prior re-
ports, there is a significant lag in property tax increment receipts (approximately 12—18 months), so the poor economic condi-
tions of the last two years are now beginning to negatively impact the Agency’s tax increment revenues. Overall, property values
in West Los Angeles have not been as negatively impacted as values in other areas of Southern California. Consequently, staff
does not expect a significant drop off in tax increment revenues, rather, TI revenues are expected to be relatively flat for the next
few fiscal years until credit becomes more readily available and development picks up again.
The following page provides TI revenue detail broken down by Redevelopment Project Area.
Per Proposition 13 passed by California voters in 1978, a property’s value is assessed when it is purchased or significantly re-
modeled. Once the assessed value is established, it cannot increase by more than 2% per year until the property is sold or
remodeled, at which time it is re-assessed. The property owners’ annual property tax is calculated as 1% of the assessed
value. The Redevelopment Agency receives tax increment based on the increase in assessed value over a base year (base
year = the year that a particular project area was established). The table below shows the total assessed values and % change
from the prior year for each project area for the four most recent years.
POSITIVE
2007-08 2008-09 2009-10
Jul - $ - $ - $
Aug - - -
Sep - - -
Oct - - -
Nov 3,084,339 4,709,440 3,395,854
Dec 9,581,018 10,805,551 11,675,222
Jan 1,550,249 1,773,752 1,767,214
Feb 3,637,607 4,381,723 3,129,281
Mar 1,122,735 88,111 685,271
Apr 6,046,931 7,240,053 7,610,459
May 4,684,483 7,974,511 6,149,519
Jun 1,680,351 1,041,482 2,836,851
TOTAL 31,387,713 $ 38,014,623 $ 37,249,671 $
Adj Budget 29,593,000 32,961,000 36,575,000
$-
$5
$10
$15
$20
$25
$30
$35
$40
Millions
Tax Increment - All Project Areas
2007-08 2008-09 2009-10 2009-10 Budget
2008-09
% change
prior year 2009-10
% change
prior year 2010-11
% change
prior year
Project Area 1 $991,903,331 10.24% $1,165,270,620 17.48% $1,083,606,896 -7.01%
Project Area 2 $696,384,724 9.36% $707,151,361 1.55% $696,549,788 -1.50%
Project Area 3 $1,516,215,389 10.19% $1,656,159,352 9.23% $1,633,601,927 -1.36%
Project Area 4 $635,175,732 7.60% $632,727,379 -0.39% $630,839,859 -0.30%
$3,839,679,176 9.62% $4,161,308,712 8.38% $4,044,598,470 -2.80%
54
ATTACHMENT 3
RDA BUDGET REPORT
9
UNRESTRICTED FUNDS REVENUE ANALYSIS (continued):
TAX INCREMENT by COMPONENT AREA:
Fiscal Years 2007-08, 2008-09 and 2009-10 (graphs are cumulative)
The above graphs illustrate the magnitude
of tax increment generated from each of
the four project areas. Project Areas 1
and 3 generate the most tax increment,
accounting for approximately 70% of the
total TI revenues (30% and 40% respec-
tively). Project Area 1 is comprised pri-
marily of the Fox Hills area (seen here in
blue). Project Area 3 is comprised primar-
ily of the Hayden Tract and Downtown
areas (seen in red). Project Area 2 is com-
prised primarily of the Jefferson/Overland
intersection (seen in yellow) and Project
Area 4 is comprised primarily of West
Washington Blvd and Sepulveda Blvd.
Project Area Expiration Dates:
Project Area 1: 07/26/2014
Project Area 2: 12/28/2014
Project Area 3: 11/25/2018
Project Area 4: 11/23/2029
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
Millions
Project Area 1 2007-08 2008-09 2009-10 2009-10 Budget
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
Millions
Project Area 3
2007-08 2008-09
2009-10 2009-10 Budget
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
Millions
Project Area 4
2007-08 2008-09
2009-10 2009-10 Budget
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
Millions
Project Area 2
2007-08 2008-09
2009-10 2009-10 Budget
55
ATTACHMENT 3
RDA BUDGET REPORT
10
UNRESTRICTED FUNDS REVENUE ANALYSIS (continued):
REVENUE SOURCES:
Fiscal Years 2007-08, 2008-09 and 2009-10 (graphs are cumulative)
In FY 2009-10, Pacific Theaters exceeded the budget projection by 17%. Although the Theater did not per-
form as well as it did in FY 2008-09, Pacific Theaters significantly exceeded budget projections in FY 2009-
10 by approx. $230,000.
In FY 2009-10, Farmers’ Market receipts exceeded budget projections by 14%. Although the Farmers’ Mar-
ket did not perform as well as it did in FY 2008-09, it exceeded budget projections in FY 2009-10 by almost
$15,000.
Pacific Theater Revenues
Farmers’ Market Revenues
POSITIVE
POSITIVE
2007-08 2008-09 2009-10
Jul - 209,487 165,461
Aug - 323,733 154,012
Sep 248,471 201,622 102,713
Oct 125,539 57,298 -
Nov 1,786 35,174 356,859
Dec 1,786 138,366 88,709
Jan 112,184 110,804 66,587
Feb 182,126 49,796 -
Mar 1,786 121,930 162,109
Apr - 90,995 42,000
May 3,572 176,889 200,503
Jun 196,961 243,767 293,878
TOTAL 874,211 1,759,861 1,632,831
Adj. Budget 1,200,000 1,300,000 1,400,000
Jul 11,234 $ 15,220 $ 11,023 $
Aug 14,155 12,581 11,557
Sep 10,426 8,843 11,498
Oct 10,461 12,817 7,898
Nov 11,378 9,787 8,229
Dec 4,522 466 3,650
Jan 5,118 14,223 12,367
Feb 10,472 - 7,308
Mar 9,330 11,219 9,277
Apr 12,579 24,034 11,802
May 10,919 8,396 10,997
Jun 11,100 12,682 13,892
TOTAL 121,694 $ 130,268 $ 119,498 $
Adj Budget 105,000 115,000 105,000
$0.0
$0.3
$0.5
$0.8
$1.0
$1.3
$1.5
$1.8
$2.0
Millions
Pacific Theatre
2007-08 2008-09
2009-10 2009-10 Budget
$0
$20
$40
$60
$80
$100
$120
$140
Thousands
2007-08 2008-09
2009-10 2009-10 Budget
Farmers Market Income
56
ATTACHMENT 3
RDA BUDGET REPORT
11
Unrestricted Funds Revenue Analysis (continued):
OTHER REVENUE SOURCES (cont.):
Fiscal 2007-08, 2008-09 and 2009-10 (graph is cumulative)
Adopted Budgets
The Redevelopment Agency’s Adopted budgets are available on the City’s website at
www.culvercity.org/redev/redev_workprogram.asp?sec=gov
Glossary
CRA— Community Redevelopment Association. Statewide Agency that advocates on behalf of member agencies.
DDA — Development and Disposition Agreement. A development agreement between the Agency and a Developer.
ERAF — Education Revenue Augmentation Fund. State fund from which some education expenses are paid.
LMIF — Low Moderate Income Housing Fund. Funds restricted by state law to the provision of affordable housing. Per state
law, 20% of annual tax increment receipts must be set aside in a Low Moderate Income Housing Fund for this purpose.
OPA — Owner Participation Agreement. Agreement between the Agency and a Property Owner to make property improve-
ments.
SERAF — Supplemental Education Revenue Augmentation Fund. State fund from which some education expenses are paid.
TI — Tax Increment. Increment increase in property tax revenues above a base year.
In FY 2009-10, parking revenues were approximately 6% below budget projections. This is due primarily
to weakening monthly parking revenues resulting from a decrease in business activity at the Ince parking
structure. Although parking revenues increased from last year, that is somewhat misleading as the Agency implemented new ac-
counting procedures related to the Modern Parking management contract. Adjusting for that new procedure, revenues would
have been $787,162, which is approximately 11% less than FY 2008-09.
Film Parking receipts were $74,900, which exceeded the $50,000 budget, but was 40% less than last year’s Film Parking Revenue.
NEGATIVE
OTHER NOTES:
Parking Revenues
2007-08 2008-09 2009-10
Jul 101,177 $ 105,496 $ 108,721 $
Aug 121,649 139,479 45,016
Sep 76,377 32,109 24,963
Oct 92,723 58,150 144,419
Nov 116,765 15,649 164,104
Dec 67,513 71,641 98,978
Jan 108,650 206,433 122,484
Feb 46,103 61,195 63,198
Mar 129,622 6,549 100,829
Apr 43,353 100,265 171,695
May 80,256 66,201 56,660
Jun 106,047 22,402 80,969
TOTAL 1,090,235 $ 885,569 $ 1,182,036 $
Adj Budget 943,120 977,620 1,254,620
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Thousands
RDA Parking
(Structures and Lots)
2007-08 2008-09
2009-10 2009-10 Budget
57
ATTACHMENT 3
RDA BUDGET REPORT
12
LOW/MODERATE INCOME HOUSING FUND ANALYSIS:
HOUSING FUND:
Revenues and Expenditures (graphs are cumulative)
REVENUES — The Low/Moderate Income Housing fund’s primary revenue source is tax increment housing set aside funds,
which is calculated as 20% of the gross tax increment received. As such, Housing fund revenues tend to mirror TI revenues
on page 8 of this report. As previously mentioned, TI revenues slightly exceeded budget projections, consequently, Housing
Fund revenues also slightly exceeded budget projections.
EXPENDITURES — The primary Low/Moderate Income Housing expenditures in FY 2009-10 were on Rental Assistance Pro-
gram Grants (about $36,000 per month), Rehab Grant Incentives ($94,000), and administrative charges. Approximately $2.5
million was budgeted in FY 2009-10 for implementation/construction of the low/moderate income housing project at the
Globe properties and demolition of those properties has been completed. The Housing Division is working toward imple-
menting the Comprehensive Housing Strategy and identifying additional development opportunities for low/moderate in-
come housing projects.
2007-08 2008-09 2009-10
Jul 6,332 $ (6,882) $ (36,640) $
Aug 33,466 19,162 16,398
Sep 21,952 41,097 52,451
Oct 87,573 38,840 16,474
Nov 705,449 969,393 711,533
Dec 1,939,384 2,408,680 2,391,821
Jan 422,836 410,277 398,617
Feb 747,414 921,693 659,494
Mar 338,554 (208,432) 244,303
Apr 1,194,032 1,530,579 1,539,488
May 960,582 1,607,753 1,245,848
Jun 478,963 307,508 736,622
TOT Y-T-D 6,936,537 8,039,668 7,976,409
Adj Budget 6,865,000 $ 7,467,000 $ 7,914,000 $
$(1)
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
Millions
Low/Moderate Income Housing
Revenues
2007-08 2008-09
2009-10 2009-10 Budget
2007-08 2008-09 2009-10
Jul (52,060) $ 31,277 $ 232,826 $
Aug 114,800 37,276 242,292
Sep 87,763 609,316 900,725
Oct 82,561 239,685 278,028
Nov 52,196 236,242 266,465
Dec 1,114,943 268,073 257,209
Jan 234,455 237,563 249,491
Feb 290,272 231,223 245,555
Mar 238,400 222,249 219,099
Apr 284,597 241,090 306,230
May 280,090 229,912 11,196,817
Jun 915,689 807,349 52,507
TOT Y-T-D 3,643,706 3,391,255 14,447,244
Adj Budget 12,330,046 $ 12,607,422 $ 19,586,121 $
$(5)
$-
$5
$10
$15
$20
$25
Millions
Low/Moderate Income Housing
Expenditures
2007-08 2008-09
2009-10 2009-10 Budget
58
ATTACHMENT 3
Total Budget
Total Bond Funding
Bond Funds
Expended to Date
Estimated
Completion
1. Washington/National (92620) $3,300,000 $3,300,000 $247,000 FY 2010-11
2. Town Plaza (93400) $3,100,000 $3,100,000 $300,000 FY 2010-11
3. Washington AIP: Phase 1 (92670) $880,750 $880,750 $83,500 FY 2010-11
4. Downtown Parking Study (91050) $167,000 $167,000 $156,600 FY 2009-10
RDA BUDGET REPORT
13
TAX EXEMPT BOND FUNDS
FISCAL YEAR TO DATE: (graph is cumulative)
CURRENT BOND FUNDED PROJECTS of INTEREST
REVENUES — Tax exempt bond fund revenue is primarily interest income earned on the fund balance. Approximately $315,000 in
interest income was earned in FY 2009-10.
EXPENDITURES — Tax Exempt Bond expenditures in FY 2009-10 were primarily related to the Downtown Parking Study, Washing-
ton/National Engineering studies (per executed MOU with Metro), Washington Blvd AIP, Phase 1 and acquisition of the 3433
Wesley property from the City.
NOTE: Tax exempt bond funds are restricted and can only be used for public improvements and public infrastructure. Bond funded projects are
often similar to Capital Improvement Projects as they are typically larger projects that may take more than one fiscal year to complete. Typically,
the entire project budget is allocated in the first year and any unspent bond funds are typically carried over to the following year.
The projects identified above are major projects funded by tax exempt bonds. The Washington/National project is to fund col-
umn enhancements and a shoring wall at the Culver City terminus of the EXPO light rail project to support future development at
the Washington/National TOD site. The Town Plaza project will fund improvements to the Town Plaza area in front of the Pacific
Theaters in conjunction with the development of the Parcel B site. Washington Blvd AIP: Phase I is the first of three phases to
beautify the West side of Culver City along the Washington Blvd corridor. Ongoing maintenance for these projects will be funded
by benefitting property owners via a benefit assessment district. The Downtown Parking Study is a study of the parking supply
and demand in downtown Culver City. This project is nearing completion as the Agency is now considering recommendations.
2007-08 2008-09 2009-10
Jul - $ - $ (137,037) $
Aug - 37,323 (2,790)
Sep 40,031 182,198 13,517
Oct 397,032 518,843 75,521
Nov 161,740 294,138 28,170
Dec 642,128 322,106 25,992
Jan 639,181 16,970 27,529
Feb 237,320 35,873 170,809
Mar 356,464 2,830 15,298
Apr 574,914 203 12,095
May 462,252 12,516 8,994
Jun 600,315 18,314 434,024
TOT Y-T-D 4,111,377 1,441,314 672,122
Adj Budget 8,019,086 $ 13,302,061 $ 18,482,011 $
$(5)
$-
$5
$10
$15
$20
Millions
Tax Exempt Bonds
Expenditures
2007-08 2008-09
2009-10 2009-10 Budget
59
ATTACHMENT 3