City of Culver City, California
Agenda Item Report
Meeting Date: _05/10/2010_ Item Number: J-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM: FOUR-
FIFTHS VOTE REQUIREMENT - Fiscal Year 2009-10 Third Quarter Financial
Monitoring Report and Adoption of Proposed Budget Amendments
Contact Person/Dept.: Jeff Muir/Finance Phone Number: 310-253-6006
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-mail) Meetings and Agendas – City Council and Redevelopment
Agency (05/05/10); (E-mail) Ongoing Topics – Fiscal and Budget Issues (05/05/10)
Department Approval:
Jeff Muir (05/04/10)
City Attorney Approval: Carol A. Schwab
(by R. Miranda) (05/05/10)
Chief Financial Officer Approval:
Jeff Muir (05/04/10)
City Manager/Executive Director Approval:
P. Lamont Ewell (05/06/10)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board (Agency
Board) receive a presentation on the Approved Budget for Fiscal Year 2009-10 and
adopt proposed budget amendments.
City budget amendments require a 4/5
ths
vote.
BACKGROUND / DISCUSSION:
The Finance Department typically prepares quarterly, mid-year, and year-end
Financial Monitoring Reports once the accounting periods have been closed for the
respective reporting cycle. This Third Quarter Financial Monitoring Report presents
the City Council and Agency Board with a snapshot of expenditures and revenues
through the third quarter of FY 2009/2010.
FY 2008-09 Recap
December 2007 marked the beginning of one of the worst economic crises the
nation has experienced in decades. A collapse in the residential housing market
resulting from a record number of foreclosures led to a collapse in the financial
services industry. To protect themselves, many financial services firms initiated
mass layoffs and stopped lending money. Since most Americans’ spending is
dependent on available credit, the tightening of credit by lenders caused a significant
drop off in consumer spending. The drop off in consumer spending spelled financial
trouble for the retail and automobile industries. This led to more layoffs, more
foreclosures, and further decreased consumer spending.
City of Culver City, California
Agenda Item Report
For state and local governments, this meant lower tax revenues to support growing
demand on services as demand for free or low cost public services tends to increase
in recessionary periods.
FY 2008/2009 was no different for Culver City as total General Fund revenues
declined by 3.5% from the prior year and the General Fund finished the year with a
$3.6 million operational deficit. This operational deficit was almost offset by one-
time revenue received from the sale of the Warner Lot, which was $2.947 million.
FY 2009-10 Discussion
Due to the significant economic uncertainty experienced during the FY 2009/2010
budget process, the City’s adopted Budget anticipated a number of one-time
measures to provide the City with additional time to more fully evaluate options to
reduce costs or raise revenues. Since the Adopted FY 2009/2010 Budget was
approved, some of the one-time stop gap measures did not materialize and
revenues fell further than even the conservative estimates used when the City
Manager’s Proposed FY 2009/2010 Budget was presented. Consequently, for the
second consecutive fiscal year, the City will have an operational deficit. The
estimated operational deficit for FY 2009/2010 is approximately $5 million. As
anticipated, to partially address this operational deficit, one-time transfers of $1.25
million from the Equipment Replacement Fund and $550,000 from the Innovation
Fund will be made prior to the close of the fiscal year on June 30, 2010. Even with
these one-time transfers, there remains approximately $3.2 million in operational
deficit. As the prior City Manager had conveyed to the City Council on November 9,
2009, this $3.2 million deficit was proposed to be addressed by utilizing funds from
the City’s General Fund Reserve (the City’s savings account).
Although the economy as a whole has shown signs of improvement, tax revenues
typically lag economic trends by 6 – 12 months, which means the great majority of
governments, including Culver City, are just now feeling the effects of the deepest
part of the recession. Also, it is important to remember that even though there is talk
of the beginning of a recovery, California has been among the hardest hit states in
regard to the housing fall out and unemployment (only Michigan [14.1%] and
Nevada [13.4%] had higher unemployment rates in March than California [12.6%]).
Reports from the State of California indicate the State continues to face major
operational deficits, currently estimated at $20 billion annually, which the State has
“addressed” in part by redirecting traditionally local revenues into the State Treasury.
Therefore, California’s recovery is expected to lag behind the nation and other states
and take a longer period of time to be realized.
The following sections will discuss the revenue and expenditure trends for the City
and Redevelopment Agency through three quarters of FY 2009/2010.
General Fund
City of Culver City, California
Agenda Item Report
Through the third quarter of FY 2009/2010, total General Fund revenues are
$55.825 million, or 67.5% of the adjusted budget, and expenditures are $60.955, or
71.9% of the adjusted budget. As a point of reference, over the last three prior fiscal
years (2006/2007 through 2008/2009), the average revenue receipts at the end of
the third quarter are 69.4% and the average expenditures are 69.9%.
Results through March 31, 2010 for the City are not encouraging. Although
expenditures are approximately at the budget target, revenues are coming in even
lower than originally anticipated. Certain categories of revenues have continued to
perform poorly this fiscal year, including the City’s major tax revenues – Sales Tax
and Utility User Tax. As a result, staff recommends the following budget
amendments be made to adjust budget revenues accordingly (which results in a net
reduction in revenues) and to better reflect projected receipts in certain larger
categories. (Individual line item amounts can be found in Attachment 1.)
ADOPTED
BUDGET
FISCAL 2009/2010
RECOMMENDED
ADJUSTMENTS
FOR
FISCAL 2009/2010 DIFFERENCE
Property Tax $3,685,000 $3,870,000 $185,000
Sales Tax $16,165,140 $14,563,000 ($1,602,140)
Public Safety Sales Tax (PSAF) $360,000 $298,000 ($62,000)
Business Tax $9,541,000 $9,541,000 $0
Franchise Tax $1,330,000 $1,330,000 $0
Real Property Transfer Tax $1,500,000 $750,000 ($750,000)
Utility Taxes $14,637,000 $14,390,000 ($247,000)
Transient Occupancy Tax (TOT) $2,746,450 $2,837,000 $90,550
Commercial/Industrial Dev. Tax $985,000 $300,000 ($685,000)
Licenses and Permits $1,816,790 $2,270,625 $453,835
Intergovernmental $3,453,380 $3,477,800 $24,420
Charges for Svcs. (Includes RDA billings) $10,212,115 $11,841,185 $1,629,070
Fines and Forfeitures $4,057,000 $4,306,000 $249,000
Use of Money & Property $1,039,000 $984,000 ($55,000)
Interfund/Departmental (Admin. Allocation) $6,689,009 $5,237,200 ($1,451,809)
Other Revenues $474,169 $795,420 $321,251
Other (Interfund Transfers) $3,995,300 $4,134,750 $139,450
TOTAL GENERAL FUND $82,686,353 $80,925,980 ($1,760,373)
FISCAL YEAR 2009/2010
THIRD QUARTER GENERAL FUND REVENUES
The total proposed net revenue adjustments are a reduction of $1.76 million from the
Adopted Budget. The Adopted FY 2009/2010 Budget included $1 million in to be
determined personnel reductions that did not, and will not, materialize this year.
Though there were discussions with labor groups as to potential cost reduction
measures, no agreement was reached. This is anticipated to result in a budget
deficit for the General Fund of approximately $3.2 million in FY 2009/2010. City of Culver City, California
Agenda Item Report
A detailed discussion of the performance of third-quarter revenues and expenditures
can be found in Attachment 2 - Third Quarter Financial Monitoring Report (Report).
The discussion for each General Fund revenue category can be found on pages 2
through 7 of the Report and General Fund expenditures by Division can be found on
pages 12 through 13 of the Report.
Enterprise and Internal Service Funds
There are no significant budgetary issues requiring a budget amendment in the
Enterprise Funds – i.e. Refuse, Transportation, and Sewer Funds – or Internal
Service Funds – i.e. Equipment Replacement, Fleet Maintenance, Self Insurance,
and Central Stores Funds. A discussion of these funds’ revenues can be found in
the Report on pages 11 through 13 and expenditures on page 18.
Culver City Redevelopment Agency
The Redevelopment Agency’s primary revenue source is Tax Increment (TI), which
is driven by the growth in assessed value of properties within the Redevelopment
Project Areas. The Redevelopment Project Area has experienced very strong
growth over the last 10 years. Despite the housing market crash and stagnant
commercial development, the Agency continues to see relatively strong growth due
to recently completed developments (e.g. Westfield Culver City renovation, Sony
parking lot, and 9900 Culver Boulevard – Culver Centrale). However, since property
tax assessed values typically lag economic conditions by approximately 12 months
and commercial credit continues to be tight, TI receipts are expected to slow in FY
2010/2011.
Additionally, there is still fear that a so-called “mortgage meltdown” for commercial
property is imminent. The recession has caused a significant amount of commercial
space to go vacant (Culver City’s vacancy rate is approximately 8%, compared to 3-
4% prior to the onset of the recession in December 2007), and there was a large
turnover in commercial properties during the real estate boom. Consequently, many
commercial property owners need to get high lease rates to cover their debt
payments. Some large commercial property investment companies have already
walked away from properties and many industry experts expect more to come. The
commercial loan sector is much smaller than the residential property loan sector, so
a “meltdown” , should one occur, is not expected to have as significant an impact on
the financial industry as the residential mortgage meltdown did. However, it is
another potential drag that may further inhibit the economic recovery.
Unrestricted Fund
Unrestricted funds are funds that are available to provide financial assistance for
projects and/or programs that meet the goals of the Redevelopment Plan. These
funds consist primarily of TI revenues, but also include other revenues generated City of Culver City, California
Agenda Item Report
from the Agency’s business operations (e.g. revenues from RDA owned parking
lots).
Revenues
During the preparation of the City Manager’s Proposed Budget for FY 2009/2010,
staff received a projection of tax increment revenues from the Agency’s fiscal
consultant, Keyser Marston Associates (KMA), which was based on the 2008/2009
County Assessor’s Assessed Value Report. Subsequent to the adoption of the
Adopted Budget for FY 2009/2010, KMA provided staff with an updated tax
increment projection based on the 2009-10 Assessed Value Report, which is
received in August each year. The updated projection of $36.6 million represents a
9% increase from the original projection of $33.5 million. The increase is a result of
higher than anticipated assessed valuations. Receipts to date support KMA’s
revised projection. Therefore, staff is recommending that the original tax increment
revenue estimate of $33,462,000 be increased to $36,575,000.
All other Agency revenues are expected to meet or exceed budget projections,
except parking, which is expected to fall slightly short of budget projections. A more
detailed discussion of the Agency’s revenues can be found on pages 7 through 11 of
the Culver City Redevelopment Agency Third Quarter Financial Monitoring Report
(Attachment 4).
Expenditures:
There are a number of payments the Agency is required to pay per State Law.
These required payments include the 20% Housing set-aside, statutory pass through
payments to other taxing agencies, and administrative fees to Los Angeles County.
These payments are all calculated as a set percentage of the total tax increment the
Agency receives. Consequently, as TI revenue increases, there is a corresponding
increase in those payments. Therefore, staff is recommending that the Housing set-
aside payment be increased from $6,728,400 to $7,315,000 and the administrative
and statutory pass through payments be increased from $4,742,000 to $5,273,000.
On July 20, 2009, the City Council and Agency Board approved a Purchase and
Sale Agreement between the City and Agency for property located at 3433 Wesley
Street. Per this agreement, the Agency purchased 3433 Wesley Street for
$395,000. The legal actions necessary to complete this transaction have been
executed, however, in order to complete the financial transaction and transfer the
funds from the Agency to the City, a budget amendment is needed.
All other Agency expenditures are expected to be within budget. A more detailed
discussion of the Agency’s expenditures can be found on pages 4 through 6 of the
Culver City Redevelopment Agency Third Quarter Financial Monitoring Report
(Attachment 4).
City of Culver City, California
Agenda Item Report
Supplemental Education Revenue Augmentation Fund (SERAF)
On May 3, 2010, staff presented the Agency Board with information related to the FY
2009-10 SERAF payment that is required by the State as one of the major
redirections of traditionally local funds initiated to partially address the State’s budget
deficit. Staff also provided the Board with options for making this payment, including
borrowing all, or a portion, of the payment from the Low/Moderate Income Housing
Fund. As of the writing of this report, the Court had issued a ruling in favor of the
State. Unless a higher court issues some kind of stay, staff will make the payment
under protest. If there are any additional developments in this area, staff will keep
the Board informed.
Low/Moderate Income Housing Fund
Other than an increase of $586,600 in Housing set-aside revenues discussed earlier
in the report, there are no significant budgetary issues in the Low/Moderate income
housing fund. Community Development Department staff are currently working
towards implementing the Comprehensive Housing Strategy as approved by the
Board. Please refer to page 12 of the Culver City Redevelopment Agency Third
Quarter Financial Monitoring Report (Attachment 4) for more discussion on the
Low/Moderate Income housing Fund.
Tax Exempt Bond Funds
All bond funds are currently either appropriated or earmarked for projects that meet
the restrictions of tax exempt bond funding. No budget amendments are
recommended at this time, however, as projects for which funds have been
earmarked become more clearly defined, the Board will be asked to allocate those
funds at the appropriate time. Refer to page 13 of the Culver City Redevelopment
Agency Third Quarter Financial Monitoring Report (Attachment 4) for more
discussion on Tax Exempt Bond funds.
FISCAL ANALYSIS:
City of Culver City
Given the third quarter data, General Fund expenditures are projected to come in at
the 96.0% spending assumption for the full fiscal year, which is primarily due to the
high number of vacancies in several Departments resulting from a hiring freeze
implemented by the City Manager. Also included in the Adopted FY 2009/2010
Budget was an assumption of a reduction of $1 million in to-be-determined
personnel reductions that did not materialize. This, coupled with the poor activity
being experienced with many revenue categories, will result in an approximate
deficit of $3.2 million.
City of Culver City, California
Agenda Item Report
The City Council is being asked to formally acknowledge that approximately $3.2
million from the General Fund Reserve is needed to cover the anticipated deficit for
FY 2009/2010. It should be noted that the actual amount needed from the Reserve
will not be known until the accounting for FY 2009/2010 has concluded and the audit
for that period is complete. While staff will vigorously limit expenditures to minimize
the amount needed from the General Fund Reserve, it is possible that additional
amounts from the Reserve may be necessary once the audit is complete.
There is currently a sufficient balance in the General Fund Reserve to cover this
reduction in reserve without falling below the current 30% Reserve Policy
requirement. However, ongoing projections show the reserve dropping below the
30% Reserve Policy requirement next fiscal year unless significant corrective action
is taken. The City Manager will also be discussing this current policy with the City
Council as part of the presentation of the City Manager’s Proposed Budget for Fiscal
Year 2010/2011.
Culver City Redevelopment Agency
As with the City, the Redevelopment Agency is also impacted by the effects of the
current economy. The RDA has experienced significant growth in TI revenues over
the past five years. However, the credit crunch and slumping commercial real estate
market are expected to result in much slower growth in TI receipts over the next few
years.
Additionally, the State’s cash flow problems and projected $20 billion budget deficit
currently projected for the State’s FY 2010/2011 and forecast for the foreseeable
future may have an impact on the RDA’s cash flow beyond the current $11 million
SERAF payment being required this fiscal year as the Governor and Legislature look
for ways to raise funds and balance the State’s budget. If current litigation is not
successful in protecting RDA funds, there is a distinct possibility that State mandated
SERAF contributions, or some other method of shifting funds from the RDA, may be
extended beyond this fiscal year or even become permanent. Staff will continue to
monitor the State’s budget process.
ATTACHMENTS:
1. Proposed Recommended Revenue Adjustments
2. Culver City Third Quarter Summary Report
3. Culver City Third Quarter Financial Monitoring Report
4. Redevelopment Agency Third Quarter Financial Monitoring Report
MOTION:
That the City Council:
City of Culver City, California
Agenda Item Report
1. Receive the presentation of the FY 2009/2010 Third Quarter Financial Monitoring
Report; and,
2. Adopt proposed amendments to the Adopted Budget for Fiscal 2009/2010
Budget as shown In Attachment 1; and,
3. Approve the use of General Fund Reserves to cover the anticipated deficit for FY
2009/2010.
A budget amendment requires 4/5
ths
vote
That the Culver City Redevelopment Agency:
1. Receive the presentation of the FY 2009/2010 Third Quarter Financial Monitoring
Report; and,
2. Adopt the following amendments to the Adopted Fiscal 2009/2010 Budget:
A. Increase tax increment projected revenues by $2,933,000 in the following
areas:
a. Project Area 1 (51290000.311210): $1,635,000
b. Project Area 2 (52290000.311210): $6,000
c. Project Area 3 (53290000.311210): $1,430,000
d. Project Area 4 (54290000.311210): ($138,000)
B. Increase Housing set-aside by $586,600 (this increase will be reflected as an
increased expenditure from RDA and an increased revenue for the
Low/Moderate Housing fund):
Increase Transfer-Out
(Tax Increment Accounts)
Increase Transfer In
(Low/Mod Income Housing Accounts)
51299900.952554: $327,000 55499900.391512: $327,000
52299900.952554: $1,200 55499900.391522: $1,200
53299900.952554: $286,000 55499900.391532: $286,000
54299900.952554: ($27,600) 55499900.391542: ($27,600)
C. Increase county administration fees and statutory pass through payments by
$531,000:
a. Project Area 1 (51292000.517500): $26,000
b. Project Area 3 (53292000.517500): $20,000
c. Project Area 4 (54292000.517500): $485,000
D. Appropriate $395,000 from the Tax Exempt Bond Fund Reserve to fund the
acquisition of property located at 3433 Wesley Street from the City
(57396000).
MEETING DATE: 5/10/2010
AGENDA ITEM: Fiscal Year 2010-11 Third Quarter Financial Monitoring Report and
Adoption of Proposed Budget Amendments
ATTACHMENTS
Pages
1. Proposed Recommended Revenue Adjustments 1 - 4
2. Culver City Third Quarter Summary Report 5 - 26
3. Culver City Third Quarter Financial Monitoring Report 27 - 44
4. Redevelopment Agency Third Quarter Financial Monitoring Report 45 - 57
ATTACHMENT 1
Account Number Revenue Classification
Proposed
Adjustment
10132800.339120 Special Events 1,000 $
10132810.339120 Fiesta La Ballona 3,500 $
10111100.353100 Passport Processing Fee 1,000 $
10152100.364100 Plan Zone, Subdivision (57,085) $
10152100.364300 Plng Svcs Reimbursement (95,000) $
10152100.364400 Business Planning Review Fee 1,670 $
10132400.365110 Special Events 2,000 $
10132600.365110 Special Events (2,650) $
10132800.365110 Special Events (1,800) $
10132600.365130 Concessions Revenue (2,000) $
10132330.365150 After School Program (72,000) $
10132100.365160 Non-Resident Admin Charges 4,000 $
10132110.365210 Day Camp Fees 7,000 $
10132120.365210 Day Camp Fees (25,000) $
10132120.365220 Youth Camp Fees 5,000 $
10132100.365240 Recreation Park & Picnic Permi (17,000) $
10132110.365240 Recreation Park & Picnic Permi 28,900 $
10132400.365310 Youth Sports Program Revenue (22,950) $
10132500.365410 Classes - Contracted Fees 41,000 $
10132500.365450 Classes - Non-contracted Fees 1,330 $
10132200.365510 City Plunge (Pool) Admissions 15,000 $
10132200.365520 Pool Rental & Passes 25,730 $
10132200.365530 Aquatics Programs 19,585 $
10132200.365540 Aquatics Contract Classes 5,900 $
10131100.365710 Senior Center Rental (25,000) $
10131100.365730 Meeting Room Rental (50,000) $
10131100.365740 Auditorium Rental 80,000 $
10133100.365800 LA County Library-Kaizuka Gard 9,652 $
10145100.367210 Strike Team 17,077 $
10145100.367220 Instructional Services Revenue (13,000) $
10145100.367300 Fire Inspection - Business 25,000 $
10145100.367310 Fire Inspection-Apt Bldgs (74,000) $
10145100.367400 Ambulance Fees 116,710 $
10145600.367500 Hazardous Materials Fees 50,000 $
10140900.368100 Special Police Services 25,000 $
10140900.368300 Live Scan Fees (44,500) $
10140900.368500 DNA Services 8,000 $
10161100.369100 Street Division Services 3,000 $
10161100.369110 Weed/Lot Cleaning Assessment (7,000) $
10163300.369200 Electrical Division Services (1,400) $
10160500.369410 Stormwater Plan Ck Fees 7,000 $
10152500.370110 Code Enforcement Fees (1,500) $
10116100.370620 Credit card convenience fee 35,000 $
10113100.370710 City Property Damages Recovery 15,000 $
10155100.371100 Billings to RDA (City Account) 1,451,845 $
PROPOSED REVENUE ADJUSTMENTS
FOR FISCAL 2009-10
1ATTACHMENT 1
Account Number Revenue Classification
Proposed
Adjustment
PROPOSED REVENUE ADJUSTMENTS
FOR FISCAL 2009-10
10151500.371300 Plan Check Fees 50,000 $
10145600.371300 Plan Check Fees 55,000 $
10155100.375000 Admin Cost Alloc (Interfund) (1,451,845) $
10140900.338100 Court Fines - General 443,000 $
10140900.338200 Vehicle Code Fines (200,000) $
10152500.338300 Admin Citations 1,600 $
10120400.338300 Admin Citations 4,410 $
10199900.391203 Trsf In From - Municipal Bus F 3,293 $
10199900.391423 Trsf In From - Capital Grants 136,158 $
10163300.339110 LA DOT & Caltrans 5,980 $
10140900.342100 Post Program 30,000 $
10115100.343000 SB 90 Reimbursement 1,300 $
10115100.345000 State Motor Vehicle License Fe (132,000) $
10115100.345010 State Motor VLF In-Lieu 115,116 $
10115100.339140 CNG Excise Tax Credit 4,000 $
10151500.321000 Building Permits 47,915 $
10151500.321010 Bldg Standards Admin Surcharge 2,500 $
10151500.321100 Other License & Permits - Bldg 5,950 $
10151500.322000 Electric Permits 119,655 $
10151500.323000 Residential Building Records 6,000 $
10151500.324000 Plumbing and Heating 97,300 $
10115100.325000 Utilities (39,000) $
10132100.326000 Filming Permit 15,000 $
10115100.326000 Filming Permit 25,000 $
10115100.327000 Taxi Cab Permit 10,000 $
10140900.328100 Police Alarm Permits (6,555) $
10140900.328150 Police False Alarm Chgs (19,500) $
10120400.328520 Dog Licenses (5,570) $
10145600.329000 Fire Detection / Suppression P 70,085 $
10145600.330000 Fire Prevention Inspection Fee (7,090) $
10145600.330100 Other License & Permits - Fire 20,000 $
10145600.330150 Fire Permit Surcharge 500 $
10160500.331000 Street Permits 10,000 $
10160500.331100 Conditional Encroach Permit 25,000 $
10161100.332000 House Moving Permits (6,500) $
10114400.335100 Committee on Permits & License 10,000 $
10115100.335200 Tobacco Retailer's License Per 17,500 $
10115100.339200 Westfield Sign Revenue 55,645 $
10152100.386100 Miscellaneous Revenue (6,500) $
10111100.386100 Miscellaneous Revenue (175) $
10114100.386100 Miscellaneous Revenue 8,048 $
10114400.386100 Miscellaneous Revenue 315 $
10145100.386100 Miscellaneous Revenue 12,282 $
10145600.386100 Miscellaneous Revenue (295) $
10132810.386100 Miscellaneous Revenue (52,000) $ ATTACHMENT 1
Account Number Revenue Classification
Proposed
Adjustment
PROPOSED REVENUE ADJUSTMENTS
FOR FISCAL 2009-10
10134100.386100 Miscellaneous Revenue 670 $
10140900.386100 Miscellaneous Revenue 2,200 $
10160500.386100 Miscellaneous Revenue 17,000 $
10161600.386100 Miscellaneous Revenue (200) $
10116100.386100 Miscellaneous Revenue 102,824 $
10114400.386105 Unidentified Revenue 11,500 $
10132100.386110 Coins-Over/Short 2,600 $
10132330.386200 Donations 870 $
10132600.386200 Donations (300) $
10132800.386200 Donations (1,500) $
10116100.386200 Donations 1,100 $
10122100.386200 Donations 2,500 $
10115100.386350 Land Sale Proceeds 220,000 $
10115100.386400 Discounts Earned 310 $
10115100.311220 Tax Increment-Pass-Through 215,000 $
10114400.312100 Electricity (207,000) $
10114400.312110 Gas (250,000) $
10114400.312120 Water 78,000 $
10114400.312130 Telecommunications 151,000 $
10114400.312140 Cable TV (19,000) $
10115100.313000 Sales Tax (673,140) $
10115100.313010 Sales Tax In-Lieu (928,890) $
10115100.314000 PSAF Tax (62,000) $
10114400.317000 Real Property Transfer Tax (750,000) $
10114400.318000 Transient Occupancy Tax 90,550 $
10115100.319000 Comm Industrial Develop Tax (685,000) $
10115100.382000 Interest Income (55,000) $
Total Revenue Adjustments (1,760,370) $
3
City Of Culver City
|1010|rd
QUARTER REPORT
(Through March 31, 2010)
FOR
FISCAL YEAR 2009-10
ATTACHMENT 2
5
ATTACHMENT 2
CITY OF CULVER CITY
2009-10 3
rd
QUARTER REPORT
Table of Contents
Introduction ........................................................................................................... 1
Revenues Summary ............................................................................................ 1
Revenue Detail.................................................................................................... 2
Property Tax ............................................................................................... 2
Sales Tax ................................................................................................... 2
Public Safety Augmentation Fund Tax (PSAF) ........................................... 3
Utility Users Tax (UUT)............................................................................... 3
Business License Tax .............................................................................. 4
Franchise Tax ............................................................................................. 4
Transient Occupancy Tax (TOT) .............................................................. 4
Real Property Transfer Tax ...................................................................... 5
Commercial Industrial Development Tax .................................................. 5
Intergovernmental Revenue ....................................................................... 5
Charges for Services ................................................................................ 5
Fines & Forfeitures ..................................................................................... 7
Use of Property & Money ........................................................................... 7
Licenses & Permits ..................................................................................... 7
Interfund/Departmental ............................................................................... 7
Other Revenues ......................................................................................... 7
Other (Interfund Transfers) ......................................................................... 7
Enterprise Revenues ........................................................................................... 11
Refuse Fund ............................................................................................. 11
Transit Fund ............................................................................................. 11
Sewer Fund ............................................................................................ 12
Expenditures Summary ....................................................................................... 12
Expenditure Detail ............................................................................................... 12
Departments/Divisions Exceeding Spending Assumption ...................... 12
Departments/Divisions Below Spending Assumption ............................... 13
Internal Services Funds Summary .................................................................... 18
Enterprise Funds Summary .............................................................................. 18
Conclusion ........................................................................................................ 19
ATTACHMENT 2
71
CITY OF CULVER CITY
2009-10 Budget Monitoring Report |1010|rd
QUARTER Report (as of 3/31/10)
General Fund and Other City Funds
INTRODUCTION
Results through March 31, 2010 for the City are not extremely encouraging. Although
Expenditures are lower than anticipated, Revenues are coming in even lower than originally
anticipated. Certain categories of revenues have continued to perform poorly this fiscal year.
General Fund revenues through March are $55.8 million, or 67.3% of adjusted budgeted
projections. General Fund expenditures through March are $60.95 million, or 71.9% of adjusted
budgeted appropriations. Revenues often lag expenditures at this point in the year due to
accruals, which occur at the end of the fiscal year.
Other Funds are performing close to expectations, and will be discussed further in the report.
Fiscal 2008-09 saw some of the worst economic conditions in decades, as discussed in several
previous reports, and there has not been improvement during fiscal 2009-10. It is very difficult to
predict what will happen over the next few years. One school of thought holds that the positive
economic signs currently being seen are an artificial result of the unsustainable stimulus dollars
being pumped into the economy and tax breaks that are soon to sunset, and that the economy will
head back into a second recession. The other school of thought is that there will be a very slow
recovery, and that it will be years at best before the economy performs at levels similar to those
prior to the recession.
REVENUES SUMMARY
General Fund Revenue Overview (as of 3/31/2010)
Through March, General Fund revenues are $55,824,958, or 67.3% of adjusted interim
budget projections. Sales Tax continues to come in lower than anticipated, and receipts
were also disappointingly low for the mid-November through mid-February true-up payment.
This payment includes the holiday shopping season and re-opening of Westfield Shopping
Center. Business License is performing slightly better than expected, although it is not
expected to hit interim projections. Real Property Transfer Tax and Commercial Industrial
Development Tax are coming in far below original projections, and are recommended to be
revised downward.
Sales Tax receipts are approximately 14.1% behind receipts at this time last year, and
20.8% behind receipts from fiscal 2007-08. This includes the Holiday shopping season and
the re-opening of Westfield Shopping mall. It also reflects the loss of Hooman Automotive
Dealer, Circuit City, and Karl Storz Endoscopy, all of which were large sales tax generators
for the City.
ATTACHMENT 22
Revenue Detail
Property Tax - The adopted interim budget for Property Tax for fiscal 2009-10 is $3.685
million. Receipts through March are $2.57 million, and April will reflect the “second” round
of payments for this category. The pass-through payment received from LA County came in
higher than originally budgeted. Property Tax is expected to hit projections for fiscal 2009-
10.
It is recommended to increase the pass-through payment from the County by $215,000.
The base Property Tax amount will remain at the original adopted interim budget amount.
Projections for fiscal 2010-11 are $3.9 million.
Sales Tax - The fiscal 2009-10 adopted interim budget projection for Sales Tax is $16.165
million. Even with 2007-08 actual receipts coming in at $17.92 million, staff kept projections
lower due to the renovation of Westfield Shopping Mall during fiscal 2008-09 and the
beginning of this fiscal year. By mid-year it became clear that a further reduction in the
Sales Tax projections is necessary. Even with the re-opening of Westfield Shopping
Center, retail sales have not recovered and are not expected to for the near future. The
State has also “adjusted” the Sales Tax In-Lieu amount due the City this fiscal year, which
has reduced the amount by approximately $900,000 from budgeted projections.
The third quarter recommended adjustment for Sales Tax is recommended to be $14.56
million, which is $1.565 million less than the interim adopted budgeted amount. As
mentioned previously, the closing and loss of several high sales tax generating businesses
has contributed to this reduction, as well as the continued poor performance of retail sales.
This places sales tax back at fiscal 2001-02 levels.
The base Sales Tax projection for fiscal 2010-11 will show little increase, and most of the
increase will be due to a full year of the Westfield Shopping Mall and the second Target
store. The main increase will be in the In-Lieu amount and is estimated to increase by
approximately $700,000 from this year’s amount. The net amount of adjustment is in line
with our Sales Tax auditor's estimates. Although retail sales are expected to stay low
through the remainder of this year, there is a hope for a slight recovery towards the end of
fiscal year 2010-11. A recovery, though, will not put the City back to where it previously had
been with Sales Tax receipts. Those days are most likely years away.
The additional factor in revising the Sales Tax projection for fiscal 2009-10 is the City
recently received information pertaining to the Sales Tax In-Lieu amount that is received in
January and May of each year. These two payments are part of the “Triple-flip” payments
from the State which began in fiscal 2004-05. The City initially had projected the interim
Sales Tax In-Lieu amount to be $4.165 million for fiscal 2009-10 based on information at
that time and also discussion with our sales tax auditors. New calculations performed by
the California Department of Finance reduced this amount based on significant statewide
declines in sales tax receipts over the last year. The initial recalculation from the State was
reported as $3.415 million. Since the November 2009 report to Council, this was again
reduced to $3.236 million – a reduction of over $900,000 from the original budgeted
amount. All agencies who receive these funds are seeing reductions.
ATTACHMENT 2
93
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
budgeted projections for PSAF are $360,000.
Fiscal 2009-10 interim projections for this category were kept at the same amount as the
budget projections for 2008-09, but further analysis indicates this category will not hit this
mark. It is recommended to reduce this projection to $298,000 to better reflect the current
economic conditions.
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 interim budget projections for UUT are $14.637 million.
Through March, receipts are $9.47 million, or approximately 64.7% of projections.
Discussion of the fiscal 2009-10 performance to date of each UUT category is provided
below.
o Electricity – Adopted interim budget projection for Electricity UUT is $6.4 million.
Through March, receipts are $4.13 million, or 64.5% of projections. This
category is not expected to reach projections.
It is recommended to adjust this projection to $6.2 million in fiscal 2009-10.
Interim projections for fiscal 2010-11 for this category are $6.25 million.
o Natural Gas – The fiscal 2009-10 interim adopted budget projection for Natural
Gas UUT is $1.39 million. Through March, receipts for Natural Gas UUT are
$640,000, or 46.1% of projections. Historically, receipts for this category come
in stronger the second half of the fiscal year. Due to the significant reduction in
Natural Gas prices and relatively mild weather through the winter months, this
category will not hit the interim projection.
It is recommended to reduce the 2009-10 projection for Natural Gas UUT to
$1.14 million. Based on reports that natural gas prices are going to continue to
stay low as decreased energy usage has caused a surplus in natural gas supply,
this amount is thought to better reflect what the actual receipts will be for fiscal
2009-10. The fiscal 2010-11 projection has also been adjusted to reflect the
reduction in Natural Gas prices.
o Water – The fiscal 2009-10 budget projection for water UUT is $990,000. This
has taken into account potential water conservation due to the drier than normal
conditions experienced the last couple of years. Although reports do show a
water shortage, usage remains rather steady, and receipts through March show
water UUT at $711,800 million, or 71.9% of projections.
It is recommended to adjust this amount to $1.068 million for fiscal 2009-10.
Fiscal 2010-11 interim projections for water UUT are $1.105 million.
ATTACHMENT 24
o Telecommunications – The fiscal 2009-10 budget projection for
telecommunications UUT is $5.15 million. This was kept at a “low growth” level
for fiscal 2009-10 because of increasing usage of internet and other phone
services that do not have UUT applied to them, and increasing numbers of
“bundled” services that reduce costs. It is believed that Telecommunications
UUT is not sustainable at this level as calling plans become more inexpensive
and more users start migrating to VOIP and bundled services. This may take a
few years, though, to fully be seen.
It is recommended to adjust this projection to $5.3 for fiscal 2009-10. The
adjustment is also in-line with our UUT consultant’s projections. Interim
projections for fiscal 2010-11 for Telecommunications UUT are $5.5 million.
o Cable Television – The budget projection for fiscal 2009-10 is $700,000 for Cable
TV UUT. This category has remained relatively steady, and adjusted receipts
through March are $454,000, or 64.9% of projections.
Over the next few years, Cable UUT revenue is expected to remain flat or grow
slowly, therefore Fiscal 2010-11 projections are increased only slightly to
$720,000.
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 interim budget projection for Business License is $9.541
million. This amount also includes the Business License Certificate. Receipts through
February (and March) indicate this category will most likely hit the interim budget
projections. Due to February 28 landing on a Sunday this calendar year, the last day for
receipts to be received without a penalty was Monday, March 1, 2010. Late notices were
recently sent out to approximately 200 businesses that were noted to not to have returned
their business tax renewal by the due date.
Funding was approved in fiscal 2008-09 for a Business License Tax audit. This audit is
currently in process this fiscal year, and it is anticipated that the results will be reflected in
the fiscal 2010-11 fiscal year. It is recommended to leave the projection of $9.541million for
fiscal 2009-10. Fiscal 2010-11 interim projections are $9.8 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.
Receipts through March show the category at $424,830. The majority of these receipts
come in the latter portion of the fiscal year. It is expected receipts will hit projections.
There is no recommendation to change this amount for fiscal 2009-10. Interim fiscal 2010-
11 projections for Franchise Tax are $1.4 million.
Transient Occupancy Tax - Transient Occupancy Tax (TOT) receipts have been relatively
steady. The fiscal 2009-10 interim budget projections are $2.75 million. Receipts for TOT
are $1.892 million, or 68.9%, through March.
ATTACHMENT 2
115
It is recommended to adjust this revenue source to $2.8 million for fiscal 2009-10. Fiscal
2010-11 projections for this category are also $2.85 million.
Real Property Transfer Tax - This category is dependent on property sales – both
residential and commercial. Commercial property sales bring in the higher receipts, but the
number of property sales the past few years have been extremely low. The adopted interim
projection for this category in fiscal 2009-10 is $1.5 million. Recent reports signal a
significant slowdown for commercial sales, which will continue for the next few years. It has
become quite clear that the original projection is too high. Real Property Transfer Tax
receipts through March are only $574,000.
It is being recommended to adjust this revenue to $750,000 million for fiscal 2009-10. Fiscal
2010-11 interim projections for this category are recommended to also be $750,000.
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 continued into 2009-10.
The interim adopted budget projection for fiscal 2009-10 is $985,000. It is clear that this
was too much of an optimistic projection for this fiscal year. Receipts through March are
only $169,110, or 17.2% of projections.
At the time the projection for fiscal 2009-10 was developed, there was strong expectation of
a major development that was expected to begin construction in fiscal 2009-10. However, it
is now known this will not occur, and revised projections for Commercial Industrial
Development Tax are now recommended to be $300,000 for fiscal 2009-10. The interim
budget projection for fiscal 2010-11 is $400,000.
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 is $3.2 million and receipts through March are $1.65 million. Similar to
the Sales Tax In-Lieu payments, these payments are received in equal installs in January
and May of each fiscal year. The City will be receiving the second payment of $1.65 million
in May 2010. It is recommended to increase the projection for this category to $3.3 million
to reflect actual receipts.
A smaller portion of the Intergovernmental revenue is the VLF administrative revenue.
Unfortunately, rising DMV administrative costs have eaten into this revenue source. The
budget projection for fiscal 2009-10 is $197,000 and will not reach estimates. It is
recommended to adjust the amount to $65,000 for fiscal 2009-10.
Charges for Services - Charges for Services through March 2010 are 75.0% of the
budgeted projections (not including Redevelopment Agency Billings). 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.
ATTACHMENT 26
o Ambulance Fees - Revenue has continued to come in higher primarily due to
increases to the billing rates. Rates, which are set by Los Angeles County,
were increased 6% during the prior fiscal year. Through March receipts are
$791,700, or 85.6% of interim budget projections.
The Fiscal 2009-10 projection for this category is $925,000 and is
recommended to be increased to $1.041 million.
o Strike Team Reimbursement –This category fluctuates significantly and is
difficult to project on an annual basis. Current 2009-10 adjusted projections are
$191,787, and as additional strike team reimbursements are received they are
partially appropriated per direction of the Budget Resolution. Through March,
receipts are $117,015. A portion of the administrative surcharge, which is
above the direct reimbursement, is allowed to be appropriated within the Fire
Department’s budget to offset expenses for departmental special supplies
related directly to strike team callouts. There is no recommendation to change
this projection.
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 budgeted revenue is $660,000
and through March receipts are $486,925, or 74.0% of projections. The fee
structure for rentals is currently being revised in an effort to simplify the fee
structure and make it more equitable.
The 2009-10 projection for the Veterans Complex is $660,000. It is
recommended to increase this projection by $5,000. Fiscal 2010-11 proposed
revenues are $715,000.
o Plan Check Fees - The fiscal 2009-10 adjusted budget is $968,000, and through
March receipts are $985,600. Plan Check Fees were affected by the economic
downturn, but the revenue has been bolstered by the continued Westfield Mall
remodel early this fiscal year and is expected to come in higher than projected.
Plan Check revenue is expected to remain relatively steady during the next
year.
Fiscal 2009-10 projections are $968,000. Projections are recommended to be
increased to $1.023 million. Proposed revenues for fiscal 2010-11 are $1.094
million based on estimates from departments for projects currently in progress
or that will be begin in fiscal 2010-11.
o Public Safety Related Fees - These revenues are made up of records requests,
live scan fingerprints, vehicle impounds, and other miscellaneous fees. Through
the third quarter, public safety related fees are above budgeted projections.
Revenue of $449,500 was budgeted and thru March, over 88.5% of the revenue
has been received. Live scan requests are much lower than last year, but the
other revenues are higher than previous years.
ATTACHMENT 2
137
o Recreation Fees – Recreation fees are charged for various services which
range from adult sports leagues to day camps for children. The annual budget
for recreation fees is $1,753,396 and the total receipts through March are
$1,008,118, so at this point only 57.5% of the revenues have been received. As
the summer months approach, the influx of revenues will increase.
Fines & Forfeitures - Fines & Forfeitures is made up of moving violations, which includes
red-light camera violations and parking violations. Through March, Fines & Forfeitures
revenue is holding.
Interim budget projections for fiscal 2009-10 are forecast at $4.057 million. It is
recommended to increase this amount to $4.3 million.
Use of Money & Property - The primary revenue in Use of Money & Property is the interest
earned on investments. As of March, preliminary receipts in this category are $679,800, or
65% of initial projections.
It is recommended to reduce this category to $984,000. Fiscal 2010-11 projections are also
proposed to be slightly lower, mainly due to the extremely low investments rates currently
offered by financial institutions.
Licenses & Permits - The majority of the revenue in Licenses & Permits category is
derived from construction activity, so these revenues are drastically affected by the
economy. Budgeted projections for this category for fiscal 2009-10 are $1.816 million.
Mainly due to last minute construction needs of Westfield prior to the re-opening, receipts
through March are $1.793 million, or 99.0% of projections. The bulk of this revenue was
received the first half of the fiscal year and has dropped off slightly over the second part.
Building Permits, Electric Permits, and Plumbing & Heating Permits are all far ahead of
projections at this point due to the Westfield renovation. Fiscal 2010-11 projections are
$2.448 million.
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 fiscal 2009-10 budget for
Interfund/Department is $5,237,164, and through March $3,966,500 has been realized.
The cost allocation charges for fiscal 2010-11 is still being processed and are not available
at the time of this report.
Other Revenues – The 2009-10 adjusted budget for Other Revenues is $656,957, and
through March receipts are $74,.783. The budget includes a $395,000 one-time payment
from the Redevelopment Agency to purchase the Metro Spur (Wesley property) from the
City, and a bequest to the Senior Center for improvements. These revenues will be realized
later in the fiscal year.
Other (Interfund Transfers) - Revenue for Other (Interfund Transfers) is budgeted at
$3.995 million for fiscal 2009-10. Through March receipts are $3.133 million. The budget
ATTACHMENT 28
projection includes the one-time transfers from the Innovation Fund ($550,000) and the
Equipment Replacement Fund ($1.25 million). This projection also includes an increased
transfer from the Parking Improvement Fund due to increased parking rates.
The table below shows the adopted budget, third quarter adjusted budget, preliminary third quarter
receipts, and percentage of receipts for General Fund revenues for fiscal 2009-10.
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
RECEIPTS
AS OF 3/31/10
%
RECEIVED
AS OF
3/31/10
Property Tax $3,685,000 $3,685,000 $2,573,696 69.8%
Sales Tax $16,165,140 $16,165,140 $8,284,320 51.2%
Public Safety Sales Tax (PSAF) $360,000 $360,000 $178,657 49.6%
Business Tax $9,541,000 $9,541,000 $9,026,961 94.6%
Franchise Tax $1,330,000 $1,330,000 $424,831 31.9%
Real Property Transfer Tax $1,500,000 $1,500,000 $574,220 38.3%
Utility Taxes $14,637,000 $14,637,000 $9,470,100 64.7%
Transient Occupancy Tax (TOT) $2,746,450 $2,746,450 $1,891,801 68.9%
Commercial/Industrial Dev. Tax $985,000 $985,000 $169,110 17.2%
Licenses and Permits $1,816,790 $1,822,740 $1,793,478 98.4%
Intergovernmental $3,453,380 $3,453,380 $1,770,146 51.3%
Charges for Svcs. (Includes RDA billings) $10,212,115 $11,780,047 $8,730,764 74.1%
Fines and Forfeitures $4,057,000 $4,057,000 $3,083,207 76.0%
Use of Money & Property $1,039,000 $1,039,000 $679,793 65.4%
Interfund/Departmental (Admin. Allocation) $6,689,009 $5,237,164 $3,966,458 75.7%
Other Revenues $474,169 $656,957 $74,783 11.4%
Other (Interfund Transfers) $3,995,300 $3,998,593 $3,132,633 78.3%
TOTAL GENERAL FUND $82,686,353 $82,994,471 $55,824,958 67.3%
FISCAL YEAR 2009-10
3rd QUARTER GENERAL FUND REVENUES
As mentioned in the revenue detail categories above, staff is recommending adjusting various
revenue categories to better reflect anticipated receipts at the end of the fiscal year. Below is a
table summarizing the categories recommended to be adjusted.
ATTACHMENT 2
159
ADOPTED
INTERIM BUDGET
FISCAL 2009-10
RECOMMENDED
ADJUSTMENTS
FOR
FISCAL 2009-10 DIFFERENCE
Property Tax $3,685,000 $3,870,000 $185,000
Sales Tax $16,165,140 $14,563,000 ($1,602,140)
Public Safety Sales Tax (PSAF) $360,000 $298,000 ($62,000)
Business Tax $9,541,000 $9,541,000 $0
Franchise Tax $1,330,000 $1,330,000 $0
Real Property Transfer Tax $1,500,000 $750,000 ($750,000)
Utility Taxes $14,637,000 $14,390,000 ($247,000)
Transient Occupancy Tax (TOT) $2,746,450 $2,837,000 $90,550
Commercial/Industrial Dev. Tax $985,000 $300,000 ($685,000)
Licenses and Permits $1,816,790 $2,270,625 $453,835
Intergovernmental $3,453,380 $3,477,800 $24,420
Charges for Svcs. (Includes RDA billings) $10,212,115 $11,811,130 $1,599,015
Fines and Forfeitures $4,057,000 $4,306,000 $249,000
Use of Money & Property $1,039,000 $984,000 ($55,000)
Interfund/Departmental (Admin. Allocation) $6,689,009 $5,237,200 ($1,451,809)
Other Revenues $474,169 $795,420 $321,251
Other (Interfund Transfers) $3,995,300 $4,134,750 $139,450
TOTAL GENERAL FUND $82,686,353 $80,895,925 ($1,790,428)
FISCAL YEAR 2009-10
THIRD QUARTER GENERAL FUND REVENUES
The largest reduction is in the Sales Tax category. When this amount was originally adopted
almost a year ago, there was a modest optimism that FY 09/10 would see the beginnings of a
modest recovery. As the year has progressed it is extremely clear this will not be the case.
Continued poor retail sales and reduction of the Sales Tax In-Lieu amount has pushed staff to
adjust this amount down by over $1.6 million. The other two categories that have large downward
adjustments are the Real Property Transfer Tax and Commercial/Industrial Development Tax. The
economy has hit both of these categories extremely hard, and staff was a bit too optimistic with the
original projections. Recent news reports have reported that the commercial real estate market is
going to drop even farther. Since commercial real estate is a large portion of the Real Property
Transfer Tax category, it is being reduced to reflect this drop. A development that was thought to
move forward this year did not materialize as planned, thus, the Commercial/Industrial
Development Tax will not reach projections and is recommended to be adjusted to $300,000.
Licenses and Permits show an increase, mainly due to higher than expected last minute permits
from the Westfield Shopping Center renovation.
Charges for Services and Interfund/Departmental categories are recommended to be adjusted
based on a reclassification of funding moved from one category to another. Charges for Services
has also seen some increased activity as well, and this is also reflected in the increase.
Over all the preliminary year-end estimates of General Fund revenues for Fiscal 2009-10 is a
reduction of approximately $1.8 million. This reflects almost a 3% reduction from original interim
projections.
ATTACHMENT 210
The next couple of charts are for illustrative purposes. The chart below shows the drop in
revenues experienced over the last year, from March 2009 to March 2010. Almost all categories
have seen a significant reduction since this time last year, especially sales tax. Interfund transfers,
administrative cost allocation, and RDA Billings are fully recovered annually.
$$ %
Receipts thru
March 2008-
09
Receipts thru
March 2009-
10
Change from
fiscal 2008-
09
Change
from fiscal
2008-09
Property Tax $2,280,289 $2,573,696 $293,407 12.87%
Sales Tax $9,640,235 $8,284,320 ($1,355,915) -14.07%
Public Safety Sales Tax $202,305 $178,657 ($23,648) -11.69%
Business Tax $9,375,328 $9,026,961 ($348,367) -3.72%
Franchise Tax $523,979 $424,831 ($99,148) -18.92%
Real Property Transfer Tax $643,760 $574,220 ($69,540) -10.80%
Utility Taxes $9,830,221 $9,470,100 ($360,121) -3.66%
Transient Occupancy Tax $2,051,289 $1,891,801 ($159,488) -7.78%
Comm/Ind Development Tax $435,572 $169,110 ($266,462) -61.18%
Licenses and Permits $1,603,095 $1,793,478 $190,383 11.88%
Intergovernmental $1,679,497 $1,770,146 $90,649 5.40%
Charges for Services (Excluding RDA Billing) $4,206,633 $4,264,929 $58,297 1.39%
Fines and Forfeits $2,726,943 $3,083,207 $356,265 13.06%
Use of Money & Property $981,207 $679,793 ($301,413) -30.72%
Other Revenues $398,037 $74,783 ($323,254) -81.21%
External Revenue Subtotal
$46,578,389 $44,260,033 ($2,318,356) -4.98%
Other (Interfund Transfers) $1,241,100 $3,132,633 $1,891,533 152.41%
Interfund/Departmental (Admin Allocation) $4,521,974 $3,966,458 ($555,515) -12.28%
RDA Billings $3,254,918 $4,465,835 $1,210,917 37.20%
Internal Revenue Subtotal
$9,017,991 $11,564,926 $2,546,935 28.24%
Total General Fund Revenues
$55,596,381 $55,824,959 $228,578 0.41%
Revenue Comparison
Fiscal 2008-09 & Fiscal 2009-10
Revenue Description
Fiscal 2008-09 saw the first signs of the declining economy. Fiscal 2007-08 still had strong
receipts in most all categories, and the following chart is included as another illustration at how
much the economy has affected General Fund revenues. The drop in revenue receipts from
March 2008 to March 2010 is over 10.5%. This does not include interfund transfers, administrative
cost allocation or RDA billings, as these are fully recovered on an annual basis. Interfund
Transfers for fiscal 2009-10 are especially high due to the one-time transfers of $1.25 million from
the Equipment Replacement Fund and $550,000 from the Innovation Fund to help bridge the gap.
Also, with the increase in Parking Meter rates, additional funds are being transferred to the
General Fund beginning this year.
ATTACHMENT 2
1711
$$ %
Receipts thru
Mar 2007-08
Receipts thru
Mar 2009-10
Change from
fiscal 2007-08
Change from
fiscal 2007-
08
Property Tax $1,721,584 $2,573,696 $852,112 49.50%
Sales Tax $10,453,081 $8,284,320 ($2,168,761) -20.75%
Public Safety Sales Tax $217,317 $178,657 ($38,660) -17.79%
Business Tax $9,657,273 $9,026,961 ($630,312) -6.53%
Franchise Tax $544,457 $424,831 ($119,626) -21.97%
Real Property Transfer Tax $1,862,262 $574,220 ($1,288,042) -69.17%
Utility Taxes $9,577,027 $9,470,100 ($106,927) -1.12%
Transient Occupancy Tax $1,750,732 $1,891,801 $141,069 8.06%
Comm/Ind Development Tax $795,084 $169,110 ($625,973) -78.73%
Licenses and Permits $1,756,556 $1,793,478 $36,922 2.10%
Intergovernmental $1,635,874 $1,770,146 $134,272 8.21%
Charges for Services (Excluding RDA Billing) $4,477,388 $4,264,929 ($212,458) -4.75%
Fines and Forfeits $3,393,889 $3,083,207 ($310,682) -9.15%
Use of Money & Property $1,243,791 $679,793 ($563,997) -45.35%
Other Revenues $379,202 $74,783 ($304,419) -80.28%
External Revenue Subtotal
$49,465,516 $44,260,033 ($5,205,484) -10.52%
Other (Interfund Transfers) $1,092,600 $3,132,633 $2,040,033 186.71%
Interfund/Departmental (Admin Allocation) $4,235,917 $3,966,458 ($269,459) -6.36%
RDA Billings $3,006,530 $4,465,835 $1,459,305 48.54%
Internal Revenue Subtotal
$8,335,047 $11,564,926 $3,229,879 38.75%
Total General Fund Revenues
$57,800,564 $55,824,959 ($1,975,604) -3.42%
Revenue Comparison
Fiscal 2007-08 & Fiscal 2009-10
Revenue Description
ENTERPRISE FUND REVENUES
Refuse Fund
Through March, Refuse Fund revenues total $7.898 million, which is 0.8% higher than this
point last year. Two of the revenue categories which are lagging are Drop Box Service and
Bin Rental Charges. Drop Box Service has received 62.1% of its adjusted budget, while Bin
Rental Charges has only received 53.7% of its adjusted budget. Also, due to the slow
economy, recycling rates have seen a drop. Consumers are not buying as much and this
has a direct affect on trash and recycling disposal.
Transit Fund
The Transportation Fund has received 22.3% of its budgeted revenue. Later in the fiscal
year the fund is expecting to receive the bulk of its revenues, which are comprised of FTA,
ATTACHMENT 212
TDA, and Prop 1B funds. Despite the fare increase, farebox revenues are 8.6% lower than
this point last year.
Sewer Fund
Sewer Fund revenue, totaling $6.065 million, is 2.4% higher than this point last year. The
Sewer Fund’s primary source of revenue is Sewer Operating Fees, which are billed on
property taxes and received in December and April. Sewer Operating Fees are currently at
86.8% of the adjusted budget. Sewer Facility Charges have far exceeded expectations,
with revenue totaling $824,000 through March. Most of this particular revenue can be
attributed to the construction at Sony and Westfield.
EXPENDITURES SUMMARY
General Fund Expenditure Overview (as of 3/31/2010)
Overall, preliminary General Fund expenditures through March are $60.954 million, or
71.9% of appropriations, which is just at the 72.0% spending limit. Continued salary
savings from vacant positions and, to a lesser extent, departments tightening up spending
somewhat in O&M, is expected hold expenditures steady the remainder of the fiscal year.
For the most part, departments are currently successful in coming in under the 72.0%
spending limit through nine months of fiscal 2009-10. The City Attorney’s Office (76.9%),
and Fire Department (72.8%) currently exceed the 72.0% assumption.
The City Clerk’s Office (49.7%) is currently far below the 72.0% assumption. This is
mainly due to election costs not yet being expended.
All other General Fund Departments are within a normal expenditure range, i.e. less than
72.0% but more than 64.0% of its adjusted budget expended.
Expenditure Detail
Departments/Divisions Exceeding the Spending Assumption:
The City Attorney’s Office (76.9%), and Fire Department (72.8%) currently exceed the
72.0% assumption.
o The City Attorney’s Office is higher than the spending assumption primarily
due to legal service expenses for litigation being almost fully expended to date.
A large portion of the legal expenses are related to the County’s certification of
the EIR allowing expanded drilling in the Inglewood Oil Field.
o The overage in the Fire Department is due primarily to personnel costs
(constant staffing) that have been expended during strike team deployments.
However, the City has received Strike Team reimbursement funds to offset the
increased expenditures.
ATTACHMENT 2
1913
Additionally, ten (10) General Fund divisions currently exceed the 72.0% 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 two departments described above, is below the 72.0% budget target
through nine months of the fiscal year.
o Office of the Police Chief is at 73.4% and will end the year under target. The
timing of some personnel costs can throw off a division that only contains
personnel costs.
o Police Communications expended 80.0% of its adjusted budget. The major
factor is expending of overtime in excess of vacancy savings (over $100,000
over budget), as well as higher than budgeted bi-weekly payoffs for accrued
vacation and sick leave. This is due to a vacancy within the division.
o Fire Suppression expended 80.7% of its adjusted budget. A major factor is in
constant staffing due to strike team deployments. As previously noted, the City
has received Strike Team reimbursements to offset this increased cost. 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
(62.1%), which offsets some of the increased costs in Fire Suppression.
o Building Safety expended just slightly over the target, and through March was
at 72.3%. This is primarily due to Contract Labor expenses.
o Public Works Administration is at 75.8% and will end the year under target.
The timing of some personnel costs can throw off a division that mainly contains
personnel costs.
o Maintenance Operations expended 73.8% of its adjusted budget and is
expected to come in under target at the end of the year.
o Tree Maintenance expended 74.7% of its adjusted budget. This is due
primarily to overtime and O & M expenses.
o Building Maintenance is slightly over the target at 72.2%, and is expected to
come in under the target at the end of the year.
o Graffiti Abatement expended 75.4% of its adjusted budget. This is mainly due
to overtime expenses that were not budgeted for. this will be evaluated for the
fiscal 2010-11 budget and adjusted as necessary.
o Parking Maintenance is at 74.4% and is primarily due to Maintenance charges
being almost fully expended through March.
Departments Significantly Below the Spending Assumption:
The City Clerk (49.7%) and Parks, Recreation and Community Services (PRCS) were both
below the 64.0% spending assumption (i.e. more than 8% below the target).
o City Clerk savings are mainly due to election funds not yet being expended.
This will occur during the next few months and will be reported in subsequent
reports.
o PRCS has vacancies, which has enabled expenditures to be lower than normal.
All other General Fund Departments were within a normal expenditure range, i.e. less than 72.0%
but more than 64.0% of its adjusted budget.
ATTACHMENT 214
FISCAL YEAR 2009-10
3rd QUARTER GENERAL FUND EXPENDITURES
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
EXPEND
AS OF 3/31/10
%
EXPEND
AS OF
3/31/10
GENERAL GOVERNMENT
CITY COUNCIL/CITY
MANAGER $1,556,692 $1,607,870 $1,142,360 71.0%
CITY CLERK $562,079 $564,207 $280,374 49.7%
CITY ATTORNEY $1,912,650 $2,531,540 $1,947,992 76.9%
FINANCE $4,653,955 $4,784,916 $3,151,734 65.9%
Finance Admin & Budget $1,256,055 $1,296,586 $839,748 64.8%
General Accounting $621,704 $621,704 $397,119 63.9%
Accounting Operations $979,853 $1,004,853 $694,526 69.1%
Treasury $1,183,341 $1,248,771 $800,080 64.1%
Purchasing $613,002 $613,002 $420,261 68.6%
HUMAN RESOURCES $1,167,961 $1,214,414 $788,390 64.9%
INFORMATION TECH. $3,364,099 $3,546,753 $2,416,066 68.1%
Total General Government $13,217,436 $14,249,700 $9,726,916 68.3%
PARKS, REC. & COMMUNITY
SVCS
PRCS Admin $835,656 $837,951 $475,959 56.8%
Cultural Affairs $475,451 $481,103 $238,404 49.6%
Recreation $963,266 $963,266 $661,249 68.6%
Parks and Playgrounds $232,377 $232,377 $163,945 70.6%
Camp Programs $203,353 $205,191 $145,859 71.1%
Pool and Aquatics $374,428 $382,363 $285,302 74.6%
Culver City Afterschool
Programs $191,420 $193,312 $127,274 65.8%
Sports Programs $193,334 $201,684 $126,098 62.5%
Rec and Enrichment Programs $395,564 $531,072 $358,880 67.6%
Youth Center $87,427 $87,427 $65,904 75.4%
Youth Mentoring $11,682 $11,682 $9,235 79.1%
Community Events &
Excursions $25,949 $26,949 $20,816 77.2%
Fiesta La Ballona $152,000 $155,789 $47,736 30.6%
Parks Division $2,481,947 $2,519,167 $1,652,028 65.6%
Senior and Social Svcs $615,578 $806,369 $380,974 47.2%
Total PR&CS $7,239,432 $7,635,702 $4,759,663 62.3%
ATTACHMENT 2
2115
FISCAL YEAR 2009-10
3rd QUARTER GENERAL FUND EXPENDITURES (Cont’d)
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PRELIMINARY
EXPEND
AS OF 3/31/10
%
EXPEND
AS OF
3/31/10
POLICE DEPARTMENT
Office of the Chief $707,824 $707,824 $519,460 73.4%
Operating Bureaus $27,268,921 $27,633,391 $19,160,476 69.3%
Communications $1,450,036 $1,450,036 $1,160,104 80.0%
Animal Control $206,001 $214,858 $96,844 45.1%
Total Police Department $29,632,782.0 $30,006,109.0 $20,936,884.0 69.8%
FIRE DEPARTMENT
Office of the Chief $887,684 $1,026,840 $666,047 64.9%
Fire Suppression $7,874,427 $8,000,735 $6,453,261 80.7%
Emergency Medical Svcs $4,680,209 $4,685,902 $2,909,487 62.1%
Emergency Preparedness $197,355 $199,955 $140,072 70.1%
Fire Prevention $1,148,733 $1,149,183 $864,584 75.2%
Communications $682,751 $713,847 $445,896 62.5%
Total Fire Department $15,471,159 $15,776,462 $11,479,347 72.8%
COMMUNITY DEVELOPMENT
Comm Dev Admin $695,348 $704,098 $501,880 71.3%
Building Safety $1,345,565 $1,403,718 $1,015,448 72.3%
Planning $1,331,220 $1,495,106 $851,466 57.0%
Enforcement Services $712,579 $726,821 $440,530 60.6%
Redevelopment $1,987,888 $1,987,888 $1,330,562 66.9%
Neighborhood Preservation $1,478,841 $1,482,486 $880,022 59.4%
Total Community Development $7,551,441 $7,800,117 $5,019,908 64.4%
PUBLIC WORKS
Public Works Admin $614,223 $614,223 $465,874 75.8%
Engineering $1,744,868 $1,801,183 $1,236,882 68.7%
Maintenance Ops $348,456 $348,627 $257,240 73.8%
Streets $2,457,016 $2,462,157 $1,667,572 67.7%
Tree Maintenance $1,106,959 $1,119,798 $836,968 74.7%
Building Maintenance $2,086,747 $2,111,995 $1,524,924 72.2%
Electrical Maintenance $1,267,222 $1,268,060 $840,482 66.3%
Graffiti Abatement $388,141 $389,953 $293,914 75.4%
Parking Meters $106,614 $106,849 $79,468 74.4%
Environmental Programs/Ops $172,769 $172,769 $75,057 43.4%
Total Public Works $10,293,015 $10,395,614 $7,278,381 70.0%
NON-DEPARTMENTAL $3,667,710 $3,096,475 $1,430,074 46.2%
Transfers $354,000 $459,660 $323,301 70.3%
Projected excess appropriations ($4,629,000) ($4,629,000) $0 0.0%
TOTAL GENERAL FUND $82,797,975 $84,790,839 $60,954,474 71.9%
* Percent expended represents the percent of the adjusted budget expended as of the end of the period covered in
this report.
ATTACHMENT 216
Below is the comparison of expenditures between fiscal 2008-09 and 2009-10 through March of
each year. Expenses are within expected increases.
Expenses thru
March 2008-09
Expenses thru
March 2009-10
$$
Change from
fiscal 2008-09
%
Change from
fiscal 2008-09
GENERAL GOVERNMENT
CITY COUNCIL/CITY MGR $1,230,877 $1,142,360 ($88,517) -7.19%
CITY CLERK $300,267 $280,374 ($19,893) -6.63%
CITY ATTORNEY $1,526,510 $1,947,992 $421,482 27.61%
FINANCE $3,096,433 $3,151,735 $55,302 1.79%
Finance Admin & Budget $937,841 $839,748 ($98,093) -10.46%
General Accounting $364,520 $397,119 $32,599 8.94%
Accounting Operations $513,443 $694,526 $181,083 35.27%
Treasury $929,241 $800,080 ($129,161) -13.90%
Purchasing $351,388 $420,261 $68,873 19.60%
HUMAN RESOURCES $878,005 $788,390 ($89,615) -10.21%
INFORMATION TECH.
$2,183,949 $2,416,066 $232,117 10.63%
Total General Government $9,216,041 $9,726,916 $566,177 6.14%
PARKS, REC. & COMM. SVCS
PRCS Admin $470,642 $475,959 $5,317 1.13%
Cultural Affairs $402,807 $238,404 ($164,403) -40.81%
Recreation $376,452 $661,249 $284,797 75.65%
Parks and Playgrounds $202,518 $163,945 ($38,573) -19.05%
Camp Programs $145,136 $145,859 $723 0.50%
Pool and Aquatics $265,788 $285,302 $19,514 7.34%
Culver City Afterschool Programs $178,263 $127,274 ($50,989) -28.60%
Sports Programs $141,882 $126,098 ($15,784) -11.13%
Rec and Enrichment Programs $368,677 $358,880 ($9,797) -2.66%
Youth Center $121,781 $65,904 ($55,877) -45.88%
Youth Mentoring $11,552 $9,235 ($2,317) -20.06%
Community Events & Excursions $16,905 $20,816 $3,911 23.14%
Fiesta La Ballona $116,914 $47,736 ($69,178) -59.17%
Parks Division $1,554,565 $1,652,028 $97,463 6.27%
Senior and Social Svcs $499,507 $380,974 ($118,533) -23.73%
Total PR&CS $4,873,389 $4,759,662 ($113,727) -2.33%
POLICE DEPARTMENT
Office of the Chief $537,006 $519,460 ($17,546) -3.27%
Operating Bureaus $19,369,214 $19,160,476 ($208,738) -1.08%
Communications $1,132,358 $1,160,104 $27,746 2.45%
Animal Control $8,468 $96,844 $88,376 1043.65%
Total Police Department $21,047,046 $20,936,884 ($110,162) -0.52%
3rd QUARTER GENERAL FUND EXPENDITURES PRIOR
YEAR COMPARISON
ATTACHMENT 2
2317
Expenses thru
March 2008-09
Expenses thru
March 2009-10
$$
Change from
fiscal 2008-09
%
Change from
fiscal 2008-09
FIRE DEPARTMENT
Office of the Chief $637,161 $666,047 $28,886 4.53%
Fire Suppression $6,871,241 $6,453,261 ($417,980) -6.08%
Emergency Medical Svcs $2,669,214 $2,909,487 $240,273 9.00%
Emergency Preparedness $36,149 $140,072 $103,923 287.49%
Fire Prevention $828,108 $864,584 $36,476 4.40%
Communications $430,273 $445,896 $15,623 3.63%
Total Fire Department $11,472,146 $11,479,347 $7,201 0.06%
COMMUNITY DEVELOPMENT 0
Comm Dev Admin $507,513 $501,880 ($5,633) -1.11%
Building Safety $1,014,406 $1,015,448 $1,042 0.10%
Planning $939,547 $851,466 ($88,081) -9.37%
Enforcement Services $491,394 $440,530 ($50,864) -10.35%
Redevelopment $1,307,700 $1,330,562 $22,862 1.75%
Neighborhood Preservation $895,413 $880,021 ($15,392) -1.72%
Total Community Development $5,155,973 $5,019,907 ($136,066) -2.64%
PUBLIC WORKS
Public Works Admin $366,497 $465,874 $99,377 27.12%
Engineering $1,244,282 $1,236,882 ($7,400) -0.59%
Maintenance Ops $256,298 $257,240 $942 0.37%
Streets $1,605,219 $1,667,572 $62,353 3.88%
Tree Maintenance $784,528 $836,968 $52,440 6.68%
Building Maintenance $1,508,196 $1,524,924 $16,728 1.11%
Electrical Maintenance $821,396 $840,482 $19,086 2.32%
Graffiti Abatement $255,816 $293,914 $38,098 14.89%
Parking Meters $79,914 $79,468 ($446) -0.56%
Environmental Programs/Ops $147,567 $75,057 ($72,510) -49.14%
Total Public Works $7,069,713 $7,278,382 $208,669 2.95%
NON-DEPARTMENTAL $1,488,756 $1,430,074 ($58,682) -3.94%
Transfers $899,276 $323,301 ($575,975) -64.05%
TOTAL GENERAL FUND $61,222,340 $60,954,472 ($212,566) -0.35%
3rd QUARTER GENERAL FUND EXPENDITURES
PRIOR YEAR COMPARISON
ATTACHMENT 218
Internal Service Funds Summary
The Equipment Maintenance & Fleet Services Fund ended the month with expenditures
and revenues nearly identical. Expenditures through March are $4,936,331, while revenues
totaled $5,005,669. As an internal service fund, Equipment Maintenance & Fleet Services
charges other funds based on usage, so the fund should end the year with the same
balance of expenditures and revenues.
The Self Insurance Fund (SIF) has collected $6.04 million, or 78.2% of the budgeted
revenue. The fund has a steady flow of revenue because the SIF costs are allocated to
each division in the City and collected monthly.
Total expenses are right on target, at 79.0% of the adjusted budget.
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. Consequently, the Self Insurance Fund had a beginning cash balance for 2008-09
of only $1.8 million. By the end of fiscal 2008-09 the fund’s cash balance was built back up
to $5 million. It is expected to remain at this level at the end of fiscal 2009-10.
Enterprise Funds Summary
Refuse Fund ended fiscal year 2008-09 with an operating surplus for the first time in many
years. Fiscal 2008-09 year-end Refuse Fund revenues were $10.96 million, and year-end
expenditures were $10.13 million (not including depreciation expense).
Current year Refuse Fund expenditures are 5.2% higher than the expenditures through
March of last year. Through March expenditures are at 59.1% of adjusted budget. This is
partially attributed to lower than expected expenditures in the Transfer Station division,
which has only expended 64.1% of the adjusted budget.
NOTE: The outstanding Refuse Fund loan amount will be $976,920 at the end of fiscal 2009-10. Of
this amount, $583,622 is owed the General Fund, $341,100 to the Equipment Replacement Fund,
and $52,198 to the Innovation Fund. With the close-out of the Innovation Fund, the remaining
amount will be added to the General Fund outstanding balance.
The Transportation Fund ended March with expenditures at 34.9% of the adjusted budget.
The low rate of expenditures is because the budgeted purchase of new CNG buses has not
occurred yet. The buses are expected to be purchased once the FTA capital funds are
received. Personnel related expenditures are currently at 64.9% of the adjusted budget.
Thru March, the Sewer Fund expended only 49.2% of the adjusted operating budget. One
reason for the low expenditures is because the second debt service payment is not due until
later in the fiscal year. In July, the Sewer Fund re-financed their existing bond debt, which
resulted in approximately $100,000 a year in savings on debt service payments.
ATTACHMENT 2
2519
CONCLUSION
Culver City is not unlike many other agencies facing the same types of fiscal issues. Certainly
there are other cities facing much more dire circumstances. There is no argument, however, that
the next few years are going to be extremely difficult – not only with decreasing or flat revenues,
but additional expenditure increases the City has little control over without dramatic changes in
pensions and both active and retiree health benefits.
ATTACHMENT 2FINANCIAL
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 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 WARNING WARNING Page 9
Charges for Services POSITIVE POSITIVE 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/ABOVE 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
3rd Quarter FY09-10
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.
ATTACHMENT 3
27
ECONOMIC & FISCAL UPDATE
The economy is showing signs of improvement, but there are still many
unresolved issues. The national unemployment rate has dropped in re-
cent months to 9.7% from a high of 10%. The problem is that much of
that decline is the result of temporary 2010 Census hiring. More positive
news is that GDP continues to grow. Preliminary estimates show that
GDP grew at an annualized rate of 3.2% in the first quarter of 2010. This
follows annualized growth of 5.6% in the fourth quarter of 2009. The
National Bureau of Economic Research’s Business Cycle Dating Com-
mittee met on April 12th, but declined to declare that the recession,
which began December 2007, is officially over. One committee member
dissented and declared that the recession ended in June 2009. The
committee may be delaying their declaration that the recession is over
due to concern about a double dip in the recession. While the situation
is slowly improving at the national level, the economic situation in Califor-
nia is much more uncertain. Due to unresolved budget issues at the
state and local levels, such as high unemployment rates, increasing pen-
sion costs, and outstanding real estate issues, among many other prob-
lems, show economic recovery within the State of California is going to
lag behind the rest of the country.
For the first three quarters of fiscal year 2009-10, General Fund reve-
nues were 0.4% lower than the first three quarters of revenue received in
fiscal year 2008-09. For the General Fund, sales tax is still the largest
source of revenue even though receipts have declined over 20% since
2007-08 and are now at levels not seen since fiscal 2001-02. Even the
extensive remodel and opening of new stores at the Culver City West-
field shopping mall wasn’t enough to keep the City’s sales tax receipts
from declining for an 8th straight quarter. The 4th quarter 2009 sales tax
receipts were 6.5% lower than receipts in the 4th quarter of 2008. Fortu-
nately, the year over year declines have slowed and are no longer in de-
clining double digits percentages. The decline in sales tax receipts
should stabilize in the next quarter or two, but any near-term growth will
be anemic at best.
The City has managed to keep General Fund expenditures on par with
last fiscal year despite increases in personnel related costs. Through
March, General Fund expenditures were 0.4% lower than this point last
year. Reductions to operating and maintenance line items have also
played a part in keeping expenditures flat.
As we progress through the budget process for fiscal year 2010-11, it is
important that changes are made that address the structural deficit that
Culver City is facing. Even if the economy miraculously bounces back
next year, the City would still face a sizable budget gap due to increased
CalPERs contributions, OPEB contributions, medical insurance plan in-
creases, and deferred capital maintenance. Thus any changes that are
made must be long term solutions, not temporary fixes that push the
structural problem further into the future.
2
“He who will not economize will have to agonize.”
Confucius, Philosopher
ECONOMIC INDICATORS
ECONOMY
Nat’l Consumer Price Index: Up
The CPI increased 0.1% in March.
Over the last 12 months, CPI has in-
creased 2.3%. The increase was
driven largely by energy costs.
Interest Rates: Even
On March 16th, the Federal Open Mar-
ket Committee voted to keep the Fed-
eral 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 reports show that the GDP in-
creased by an annualized rate of 5.6%
in the fourth quarter of 2009. For the
entire year, GDP declined 2.4% in
2009.
Ocean Container Traffic: Up
In February, ocean container traffic into
the ports of Los Angeles and Long
Beach was up 28.2% from the same
month last year.
Airport Passenger Traffic: Up
Passenger traffic to local airports in-
creased 3.4% from February 2009 to
February 2010. International traffic in-
creased 9.5%, while national traffic in-
creased 2.6% over the last year.
UNEMPLOYMENT RATES
National
February 2009 8.2%
February 2010 9.7%
March 2009 8.6%
March 2010 9.7%
State
February 2009 10.2%
February 2010 12.5%
March 2009 10.6%
March 2010 12.6%
LA County
February 2009 10.5%
February 2010 12.4%
March 2009 10.9%
March 2010 12.4%
ATTACHMENT 3
GENERAL FUND
3
GENERAL FUND ANALYSIS:
GENERAL FUND EXPENDITURES THRU MARCH 2010
(Comparison of Fiscal Years 2007-08, 2008-09, and 2009-10) [Cumulative]
GENERAL FUND EXPENDITURES — Through the third quarter of fiscal year 2009-10, Gen-
eral Fund expenditures are at 71.9% of the adjusted budget. At this point last year, expendi-
tures were at 69.9% of the adjusted budget. The higher percentage is due to a lower Adopted Budget in fiscal year
2009-10. During the fiscal 2009-10 budget process, O&M line items were scrutinized and reductions were made where
possible. This resulted in an Adopted Budget that was $2.8M lower than fiscal year 2008-09. Overall, expenditures
through March 2010 are $268,000 lower than they were at the end of the third quarter last year.
REVENUES & EXPENDITURES THROUGH MARCH 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 sometimes 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 - -
May - -
June - -
TOTAL 55,824,960 $ 60,954,474 $
$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
May 5,836,127 6,450,987
June 11,334,820 9,226,738
TOTAL 83,959,341 $ 83,436,829 $ 60,954,474 $
Adj Budget 86,018,123 $ 87,743,489 $ 84,790,835 $
$0
$20
$40
$60
$80
$100
Dollars in Millions
2009-10 Revenue 2009-10 Expenditures
ATTACHMENT 3
29
GENERAL FUND
Comparison of Adjusted Budget to Actual: Target = 72.00% through March 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. Most Departments are in-line or below the target
budget through March 2010. Below are notable variances for Departments over or below the target.
Departments significantly under Target (more than 8%):
City Council — The primary operating expenses, which include the contract for video and broadcasting services for Council meet-
ings and audit services for items such as the City’s annual Comprehensive Annual Financial Report (CAFR), have not yet been fully
expended.
City Clerk — A vacancy has helped keep personnel expenditures below budget, even with a temporary employee filling in to fulfill
the necessary duties of this position. Also, funding for the April 2010 election is included in this department, which inflates the
budget number. Most of the expenses related to the election will spent in April and May.
PR&CS — At this point last year, the PR&CS department was 65.5% expended. Expenditures are generally low at this point of
the year due to seasonal staffing issues. As the summer approaches, more programs and classes begin so personnel costs will
increase.
Non-Departmental — Through March, Non-Departmental is only 46.2% expended due to a few factors. One reason is that this
division houses the funds reserved in anticipation of the retiree sick/vacation payouts. At the end of the year the budget will be
transferred to the divisions that experienced the costs of the payouts. Also, utility bills are paid out of Non-Department and the ex-
penses generally lag one month.
Departments over Target:
City Manager’s Office — The City Manager’s Office is over the target due to a later than expected retirement and costs due to the
turnover of the City Manager position.
City Attorney’s Office —The City Attorney’s Office is over the target due to Legal Services expenses being 90.9% expended
through March because of higher than average litigation costs this year.
Fire Department — The Fire Department is over target due to constant staffing costs associated with sending Strike Teams to as-
sist with wild fires earlier in the fiscal year.
NOTABLE EXPENDITURE VARIANCES THROUGH MARCH 2010:
4
GENERAL FUND DEPARTMENTS
GENERAL GOVERNMENT
CITY COUNCIL $ 265,823 $ 265,823 $ 154,195 58.0% $ 191,393
CITY MANAGER 1,290,869 1,342,047 988,165 73.6% 966,274
CITY CLERK 562,079 564,207 280,374 49.7% 406,229
FINANCE DEPT 4,653,955 4,784,916 3,151,735 65.9% 3,445,139
CITY ATTORNEY 1,912,650 2,531,540 1,947,992 76.9% 1,822,709
HUMAN RESOURCES 1,167,961 1,214,414 788,390 64.9% 874,378
INFORMATION TECH 3,364,099 3,546,753 2,416,066 68.1% 2,553,662
TOTAL GENERAL GOVERNMENT $ 13,217,436 $ 14,249,700 $ 9,726,916 68.3% $ 10,259,784
PARKS, REC. & COMMUNITY SVCS 7,239,432 7,635,700 4,759,662 62.3% 5,497,704
POLICE DEPARTMENT 29,632,782 30,006,109 20,936,884 69.8% 21,604,399
FIRE DEPARTMENT 15,471,159 15,776,461 11,479,347 72.8% 11,359,052
COMMUNITY DEVELOPMENT 7,551,441 7,800,116 5,019,908 64.4% 5,616,084
PUBLIC WORKS 10,293,015 10,395,615 7,278,382 70.0% 7,484,843
NON-DEPARTMENTAL 3,667,710 3,096,474 1,430,074 46.2% 2,229,462
Transfers 354,000 459,660 323,301 70.3% 330,955
Excess appropriation (4.0%) & Other (4,629,000) (4,629,000) 0 0.0% -
TOTAL GENERAL FUND $ 82,797,975 $ 84,790,835 $ 60,954,474 71.9% -
TARGET
AMOUNT
ACTUAL
EXPENDED
AS OF 3/31/10
ADOPTED
BUDGET
2009-10
ADJUSTED
BUDGET
2009-10
PERCENT
EXPENDED
2009-10
ATTACHMENT 3
GENERAL FUND
5
GENERAL FUND REVENUE ANALYSIS:
TOTAL GENERAL FUND REVENUES THROUGH MARCH 2010 (Comparison of Fiscal Years
2007-08, 2008-09, and 2009-10) [Cumulative]
TOTAL GENERAL FUND REVENUES — Total General Fund revenues through March 2010 are $55,824,959, or
67.1% of adjusted budget projections. Revenue receipts through March 2010 are slightly higher (by approximately
$228,000) than at this same point last fiscal year.
Commercial Industrial Development Tax — Receipts through March 2010 for commercial/industrial development tax
are 17.2% of budgeted projections. Slow development activity has continued to plague this category.
NOTE: Staff is recommending that this category be decreased to $300,000 from $985,000.
Fines & Forfeitures — Through March, fines and forfeiture’s receipts were $3,083,207, or 76.0% of budgeted projec-
tions. Fines & Forfeitures is made up of moving violations, which includes red-light camera violations and parking vio-
lations.
NOTE: Staff is recommending that this category be increased to $4,306,000 from $4,057,000
Real Property Transfer Tax — Through the month of March, receipts were at 38.3% of budgeted projections. Due to
the continued slow real estate activity receipts remain low. In past years this category has been very volatile and is
highly dependent on commercial real estate transactions.
NOTE: Staff is recommending that this category be 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. The budgeted amount for 2009-10 is $3.2 million and receipts through March are $1.65 million. These pay-
ments are received in equal installs in January and May of each fiscal year. The City will receive the second payment
of $1.65 million in May 2010. A smaller portion of the Intergovernmental revenue is the VLF administrative revenue.
Unfortunately, rising DMV administrative costs have eaten into this revenue source. The budget projection for fiscal
2009-10 is $197,000 and will not reach estimates.
NOTE: Staff is recommending that the VLF In-Lieu category be increased to $3.3 million from $3.2 million.
NOTE: Staff is recommending that VLF Administrative category be decreased to $65,000 from $197,000.
OVERALL GENERAL FUND REVENUES — It is important to note that given the unprecedented circumstances occur-
ring within the national, state and local economies, it is difficult to forecast with certainty if a revenue category will meet
its projections or not. Information being presented in this report is based on Culver City’s actual receipts through
March 2010, and from information received from various sources—including governmental, financial and multiple news
sites. Staff monitors this information on a daily basis. If the mid-year adjustments for revenues are approved by City
Council, they will be reflected accordingly in future reports.
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
May 8,946,942 8,443,987
June 10,713,892 11,081,440
TOTAL 86,299,520 $ 82,745,752 $ 55,824,960 $
Adj Budget 82,774,909 $ 85,345,425 $ 83,145,357 $
-$10
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Dollars in Millions
2007-08 2008-09 2009-10 2009-10 Budget
ATTACHMENT 3
31BUSINESS TAX THROUGH MARCH 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-
10) [Cumulative]
GENERAL FUND
6
GENERAL FUND REVENUE ANALYSIS (continued):
SALES TAX THROUGH MARCH 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-10)
[Cumulative]
SALES TAX— Through the third quarter, Sales Tax receipts are down $1.7M from this point last year.
Compared to fiscal year 2007-08, receipts are down $2.6M or approximately 21%. This puts sales tax
receipts at levels not seen since fiscal 2001-02. Quarterly sales tax receipts continue to decline but the rate of decline is fal-
ling. Instead of double digit year over year declines, the City is now seeing single digit drops. The renovation and addition of
new stores at the Westfield shopping mall has helped sales tax receipts, but it’s not enough to offset the new consumer mind-
set. Bargain shopping is more popular than ever and experts are calling this the new normal. Within the next few quarters,
receipts are expected to stabilize and receipts may grow slightly in fiscal 2010-11, but any substantial growth is not projected
in the near future.
NOTE: Staff is recommending a budget amendment to reduce the fiscal 2009-10 sales tax budget from $16,165,145 to
$14,600,000.
NEGATIVE
BUSINESS TAX — During the current fiscal year, businesses are paying taxes based on their
gross receipts during the 2009 calendar year. Business taxes were due on March 1st this year, so
the majority of the receipts are split between February and March. Through March, revenues are 94.6% of the budgeted
projections. Delinquent notices are being sent to businesses that did not renew their business licenses, so additional reve-
nue is expected to flow in over the next few months. If revenue in April, May and June mirrors the revenue of those months
in prior years, this category should meet the budgeted projection of $9.541M.
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 1,153,656 991,747
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
May 3,557,052 3,127,807
June 975,468 776,770
Prior Yr Acc (2,129,800) (2,060,300) (1,707,700)
Current Yr Acc 2,060,300 1,707,700
TOTAL 17,922,101 16,004,311 8,284,303
Adj Budget 18,300,000 16,718,000 16,165,140
$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
May 73,308 218,997
June 142,573 149,774
TOTAL 10,171,478 $ 10,534,685 $ 9,026,961 $
Adj Budget 9,144,000 $ 10,150,000 $ 9,541,000 $
ATTACHMENT 3
GENERAL FUND
7
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH MARCH 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
May 425,935 394,215
June 432,822 406,363
Prior Yr Acc (417,420) (433,414) (467,916)
Current Yr Acc 433,414 467,916
TOTAL 5,962,528 $ 5,912,087 $ 4,129,614 $
Adj Budget 5,800,000 $ 6,303,600 $ 6,407,000 $
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
May 168,955 81,106
June 155,111 65,010
Prior Yr Acc (98,599) (121,983) (56,849)
Current Yr Acc 121,983 56,849
TOTAL 1,380,558 $ 1,115,432 $ 640,117 $
Adj Budget 1,346,000 $ 1,390,000 $ 1,390,000 $
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
May 87,329 90,956
June 77,785 80,049
Prior Yr Acc (89,981) (100,185) (99,617)
Current Yr Acc 100,185 99,617
TOTAL 976,088 $ 1,043,989 $ 711,783 $
Adj Budget 902,000 $ 960,000 $ 990,000 $
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
ATTACHMENT 3
33
GENERAL FUND
8
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH MARCH 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
May 440,672 448,159
June 440,576 532,444
Prior Yr Acc (372,380) (452,908) (460,248)
Current Yr Acc 452,908 460,248
TOTAL 5,149,900 $ 5,552,186 $ 3,534,560 $
Adj Budget 5,000,000 $ 5,150,000 $ 5,150,000 $
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
May 55,521 59,312
June 55,343 58,446
Prior Yr Acc (54,986) (56,845) (62,640)
Current Yr Acc 56,845 62,640
TOTAL 776,765 $ 713,539 $ 454,025 $
Adj Budget 608,000 $ 675,000 $ 700,000 $
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 -
May 1,178,412 1,073,749 -
June 1,161,637 1,142,313 -
Prior Yr Acc (1,033,366) (1,165,335) (1,147,270)
Current Yr Acc 1,165,335 1,147,270 -
TOTAL 14,245,839 $ 14,337,233 $ 9,470,099 $
Adj Budget 13,656,000 $ 14,478,600 $ 14,637,000 $
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
ATTACHMENT 3
GENERAL FUND
9
GENERAL FUND REVENUE ANALYSIS (continued):
UTILITY USER’S TAX THROUGH MARCH 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. Through March, total UUT receipts are over 3.7% less than at this point last year.
ELECTRICITY UUT — Revenues are 1.7% behind the receipts at this time last year, and thus, are
also slightly behind budgeted projections. Through March, revenue was at 64.5% of the adjusted
budget.
NATURAL GAS UUT — Natural gas revenues are over 20% lower than receipts at this point last
year. The low receipts is primarily due to low natural gas prices, which was caused by an oversup-
ply of natural gas in the U.S.
WATER UUT — Through the third quarter of fiscal 2009-10, Water UUT receipts are 1.2% higher
than the same point last year. City Council recently adopted a new water conservation ordinance,
which went into affect in December 2009. It is too early to determine how drastically this will affect Water UUT receipts, but
staff will continue to monitor receipts.
TELECOMMUNICATIONS UUT — Through March, telecommunications revenue are 3.1% less
than revenues at this point last year. Lower receipts can be partially attributed to consumers mov-
ing from contract based cell phone contracts to pay as you go services.
CABLE TELEVISION UUT — Cable TV UUT receipts are 4.1% lower than last year. Revenues
have been very stable, though, and are expected to remain this way through the year. Lower re-
ceipts may be partially attributed to some consumers cutting premiums channels due to recessionary factors.
PROPERTY TAX — To balance 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 will receive 100% of the City’s fiscal year 2009-10 property tax. The first half of the securitized property tax was
received in January and the second payment will be received in May. Through March, property tax receipts are 17.6%
higher than at this point last year. Even though receipts through March are higher than last year, the timing of the prop-
erty tax payments is different this year due to the State’s actions. This revenue category is expected to end the year at
the budgeted projections.
WARNING
PROPERTY TAX THROUGH MARCH 2010 (Comparison of Fiscal Years 2007-08, 2008-09, and 2009-
10) [Cumulative]
NORMAL
NEGATIVE
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
May 145,646 (74,574)
June 23,924 0
Prior Yr Acc (105,671) (82,892) (247,009)
Current Yr Acc 82,892 256,514
TOTAL 3,053,233 $ 3,295,325 $ 2,103,801 $
Adj Budget 3,147,000 $ 3,340,000 $ 3,400,000 $
NEGATIVE
NEGATIVE
ATTACHMENT 3
35CHARGES 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 71.6% of the adjusted budget through the third quarter. Revenue for
this category is 1.4% higher than last year at the same point. Some revenues within Charges for Services have declined due
to the economic conditions, especially the planning and building related services. 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 MARCH 2010 (Comparison of Fiscal Years 2007-08, 2008-09,
and 2009-10) [Cumulative]
Charges for Services — Individual Category Notables through MARCH 2010
Veterans Memorial Auditorium Fees — Through the month of March, fee receipts for the Veterans Audito-
rium Complex, which includes the Senior Center and Teen Center rentals, were at 73.8% of budgeted projections for
the fiscal year. Auditorium rental revenue is exceeding the forecasts, but Meeting Room, Teen Center, and Senior
Center rentals are all lagging.
Public Safety Related Fees — Through the third quarter, Police Department charges for services are above
budgeted projections. These revenues are made up of records requests, live scan fingerprints, vehicle impounds,
and other miscellaneous fees. Live scan requests are much lower than last year, but the other revenues are higher
than previous years.
Plan Check Fees — Year to date, plan check fees are at 82.6% of the projected budget. The strong receipts
are due in part to receipts for the Westfield Mall renovations and Sony construction. Activity from other major devel-
opments has slowed down this year, so monthly revenue in this fee category may slow down for the remainder of the
year.
Various Recreation Fees — Recreation fees in the amount of $1,008,118 were collected through the month
of March. Currently these revenues are at 57.5% of the budget, but as the summer months approach, revenue is ex-
pected to increase.
Ambulance Billings — Ambulance billings are at 85.6% of the adjusted budget. They are also higher than the
receipts at this point last year. Fees, which are set by LA County, have increased in recent years so this category is
expected to continue to remain steady.
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. Through March the City has
received $117,015 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 -
May 659,808 537,721 -
June 764,395 853,688 -
TOTAL 6,710,100 $ 6,572,235 $ 4,264,930 $
Adj Budget 5,813,450 $ 6,108,698 $ 5,954,983 $
*Does no t 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
ATTACHMENT 3
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 for fis-
cal 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 and 2008-09 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 MARCH 2010 (Comparison of Fiscal Years 2007-08, 2008-09,
and 2009-10) [Cumulative]
TRANSIENT OCCUPANCY TAX — Receipts through the third quarter are at 66.4% of budgeted pro-
jections, and 7.8% lower than this point last year. This category has been drastically affected by the
recession which has caused low occupancy rates and reduced room rates. Hotels in other areas of California have closed
due to the current recession, but fortunately the major Culver City hotels have, so far, managed to weather the storm. Last
year TOT receipts exceeded the budgeted projections, but current year receipts continue to lag. Recent reports show a slight
increase in airline passenger traffic, which is encouraging, but we still need to remain conservative in our projections.
NEGATIVE
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
May 272,733 175,561
June 242,762 201,647
Prior Yr Acc (267,833) (364,537) (266,969)
Current Yr Acc 364,537 266,969
TOTAL 2,814,453 $ 2,944,182 $ 1,891,801 $
Adj Budget 2,500,000 $ 2,850,000 $ 2,850,000 $
$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
4.1%
3.2%
3.6%
4.1% 0.1%
0.1%
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
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 sig-
nificant development activity (07-08)
$ 1,757,275
Payment of Interest for Warner Parking
Lot Sale (07-08)
$ 436,608
Building Permit Fee from significant de-
velopment 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 (09-10)
$ 100,000
Total from Fiscal 2005-06 $11,731,975
ATTACHMENT 3
37
ENTERPRISE FUND
12
REFUSE FUND ANALYSIS:
REFUSE FUND THROUGH MARCH 2010 [Revenues vs. Expenditures — Cumulative]
REFUSE FUND REVENUES — Refuse Fund revenue through the third quarter is 0.4% higher than
at this point last year. Over 26% of the Refuse Fund’s revenue is comprised of residential refuse dis-
posal 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 third quarter, revenues are at 75.5% of the budgeted projec-
tions. Bin service comprises approximately 46.5% of the 2009-10 Refuse Fund’s budgeted annual revenues amount. Sale of recy-
cle items is at 73.2% of the budgeted projections. Due to the current economic conditions, the demand for recycled material has
declined, so recycled material is selling at a much lower price compared to previous years.
Refuse disposal rates were increased by 5% for fiscal 2009-10 to help offset increased operating and maintenance costs, which
include fuels costs and repair and maintenance of equipment.
REFUSE FUND EXPENDITURES — Refuse expenditures through the third quarter are $7,508,344, or
59.1% of the adjusted budget. The relatively low percentage is attributable to a few factors, which include
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 through March 2010 are 4.1% higher than the expenditures at this time last year, in part due to higher annual amortiza-
tion charges for the replacement of six refuse trucks. The outstanding loan amount for the Refuse Fund at the end of fiscal 2009-10
will be $977,079. Loan payments to the General Fund, Innovation 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
May 602,328 624,545
June 1,219,347 1,265,602
TOTAL EXP 10,248,197 $ 10,126,260 $ 7,508,344 $
Adj Budget $11,524,493 $11,908,814 $12,700,911
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
May 947,732 943,220
June 701,157 647,231
TOTAL REV 10,813,671 $ 10,959,474 $ 7,898,450 $
Adj Budget 11,483,841 $ 11,541,718 $ 11,629,577 $
Refuse Revenues
NORMAL
ATTACHMENT 3
ENTERPRISE FUND
13
TRANSIT FUND ANALYSIS:
TRANSIT FUND THROUGH MARCH 2010 [Revenues vs. Expenditures — Cumulative]
TRANSPORTATION FUND EXPENDITURES – Transportation Fund adjusted expenditures through
the third quarter are $12,287,918, or 34.9% of the adjusted budget. 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 theses capital expen-
ditures have not yet been finalized. These purchases will most likely be pushed to fiscal year 2010-11.
Through the third quarter, personnel expenses are at approximately 64.9% of adjusted budget, and O & M expenditures are
approximately 68.9% of adjusted budgeted. All other expenditure categories are within normal target percentages and are
being monitored by Transportation and Budget staff.
TRANSPORTATION FUND REVENUES – Transportation Fund revenues are comprised of many
sources, including funding from the State and Federal government. Also, this fiscal year the
fund began receiving voter approved Measure R funds. Through March 2010, Transportation receipts were 22.3% of
budgeted projections. The low percentage is partially attributed to the fact that funding drawdown’s are being done
later this year than in previous years.
Through March, farebox revenue totaled $1,954,838, while at this point last fiscal year farebox revenue was at
$1,873,345. Despite the increase in fares, farebox revenue is only 4.4% higher than at this point last year.
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
May 1,728,972 1,470,648
June 4,514,773 2,313,229
TOTAL EXP 22,357,892 $ 19,072,729 $ 12,287,918 $
Adj Budget $22,892,622 $23,681,510 $35,231,578
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)
May 1,186,439 2,696,572
June 2,430,000 5,880,639
TOTAL REV 16,095,260 $ 20,199,604 $ 6,521,006 $
Adj Budget 17,279,756 $ 20,591,546 $ 29,183,264 $
Transit Revenues
NEGATIVE
ATTACHMENT 3
39SEWER OPERATING EXPENDITURES – Sewer Operating expenditures through March
2010 are approximately 12.6% of 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 through the first quarter are approximately 64.5% of the budgeted projections. Operating and Mainte-
nance expenditures are approximately 64.3% 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 third quarter are
$6,065,297 or 67.6% of budgeted projections. This is normal for this time of year because of
the majority of sewer operating charges are received in December and April. Sewer Operating Charges comprise
approximately 89% of the adjusted budgeted sewer operating revenue projections.
The Sewer Fund has increased Sewer Operating Charges annually for the last several fiscal years. 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 259,361 282,394 439,831
March 1,293,387 883,641 1,211,373
April 206,841 208,212
May 579,381 222,710
June 384,863 735,119
TOTAL EXP 6,084,996 $ 4,680,705 $ 5,057,241 $
Adj Budget $7,534,793 $8,438,444 $10,278,494
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 2009-10
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
May 1,027,938 1,028,117
June 590,758 223,162
TOTAL REV 10,414,205 $ 9,562,817 $ 6,065,297 $
Adj Budget 9,121,750 $ 9,897,337 $ 8,970,000 $
Sewer Op Revenues
ENTERPRISE FUND
SEWER FUND ANALYSIS:
SEWER OPERATING FUND THRU MARCH 2010 [Revenues vs. Expenditures — Cumulative]
14
ATTACHMENT 3
INTERNAL SVCS FUNDS
15
INTERNAL SERVICE FUND ANALYSIS:
EQUIPMENT MAINTENANCE & FLEET SERVICES FUND THROUGH MARCH 2010 [Revenues vs. Ex-
penditures — Cumulative]
EQUIPMENT MAINTENANCE FUND EXPENDITURES — Overall Equipment Maintenance & Fleet
Services (EM&FS) expenditures through March 2010 are $4,936,331, or 66.1% of the adjusted
budget. Personnel related expenditures are approximately 74.9%, and operating and maintenance is approximately 57.0%
of the adjusted budget amount. Petroleum Products (fuel), which makes up approximately 50% of the operating and main-
tenance budget, is 47.8% expended through March 2010.
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 has been monitoring the
charge-backs closely, and will continue to do so throughout the fiscal year to ensure all expenses are recognized.
EQUIPMENT MAINTENANCE FUND REVENUES — Equipment Maintenance & Fleet Services reve-
nues through March 2010 are $5,005,669, or 67.3% of adjusted budget projections. So far reve-
nues are slightly exceeding expenditures, but by the end of the fiscal year that gap should close because the goal of an In-
ternal Service Fund for revenues to match the actual expenditures at the end of a fiscal year. As mentioned above, charge-
outs for this fund will be closely monitored to ensure entries between expenditures and revenues are closely matched on an
on-going basis through the fiscal year so that the fund recognizes all receipts due 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 2009-10 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
May 541,520 476,180
June 844,455 860,955
TOTAL EXP 6,897,156 $ 6,998,001 $ 4,936,331 $
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
May 419,811 607,321
June 697,581 774,337
TOTAL REV 6,888,420 $ 6,733,767 $ 5,005,669 $
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
ATTACHMENT 3
41SELF-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 through March are 78.2% of adjusted budget projections.
Revenue in fiscal year 2008-09 was $3.1 million higher than expenditures, which helped the fund balance recover to a more
appropriate level.
Further analysis continues to be done on this fund, and any significant changes will be reported immediately.
INTERNAL SVCS FUNDS
16
INTERNAL SERVICE FUND ANALYSIS:
SELF-INSURANCE FUND THROUGH MARCH 2010 [Revenues vs. Expenditures — Cumulative]
SELF-INSURANCE FUND EXPENDITURES — The primary function of the Self Insurance
Fund is to pay insurance and claims costs for the City’s General Liability, Workers’ Compensa-
tion, 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. Through March,
Self Insurance Fund total expenditures are 79.0% of adjusted budget. Expenditures through March for the Premi-
ums/Claims Division of the Self Insurance Fund are 82.6%. Many of the City’s premiums are paid in the early part of
the fiscal year, so high percentage at time of year is normal. This fund continues to be monitored closely to ensure it
is still able to appropriately cover the City.
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
May 613,407 648,673
June 840,446 684,320
TOTAL REV 7,673,576 $ 8,681,490 $ 6,042,000 $
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 470,758 294,637 459,724
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
May 581,710 461,235
June 4,338,515 532,676
TOTAL EXP 10,741,785 $ 5,539,976 $ 5,880,467 $
Adj Budget 11,072,650 $ 7,449,167 $ 7,442,963 $
SIF Expenditures
ABOVE BUDGET
ATTACHMENT 3
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:
Many significant capital projects have been completed or are nearing comple-
tion. These include Fire Station #3, the Public Safety CAD/RMS/MDT project,
and the Fox Hills Area Traffic Signal Synchronization Project, and Phase I of
the Residential Overlay Program.
Due to the state’s budget problems, some Public Works projects, such as
Phase II of the Residential Overlay Program may be delayed due to the state
withholding funding. The Governor previously indicated he will fast track addi-
tional Prop 1B funds in an attempt to stimulate some economic growth. How-
ever, due to the state’s inability to sell bonds to fund these projects, there is
uncertainty on the future allocations. In fact, the state has delayed work on
thousands of current state run public works projects, including the Ballona
Creek Trail and Bike Path Enhancement and some work on Washington Boule-
vard, due to lack of funds. Gas Tax funds, which are normally received
monthly, will be delayed until April. Staff will continue to track the budget situa-
tion and adjust CIP project schedules accordingly.
MAJOR CIP FUNDING SOURCES
Adjusted
Budget
Expended to
Date Major Projects:
Street & Alley Improvements $3,550,320 $1,465,609 Residential Paving, Carson St, Sepulveda Blvd
Traffic Signal & Lighting Improvements $2,282,504 $131,807 Fox Hills ATSS
Bridge Improvements $0 $0 No projects at this time
Parking Improvements $49,800 $33,319 Parking Meter Repair/Replacement
Community Improvements $1,620,869 $235,884 Art Fund Projects, Ballona Creek
Parks & Park Facility Improvements $1,521,508 $189,993
Parks Assessment, Park Equip Repair, Culver West
Park Rehab
Police & Fire Improvements $2,533,274 $1,763,768 Fire Station #3, CAD/RMS/MDT, Firing Range
Sewer & Storm Drain Improvements $10,911,616 $143,943 Sewer Line Replacement, Pump Station Improve
Other Facility & Equipment Improvements $2,724,637 $1,452,952 Cranks Slope Repair, Other City Bldg Repairs
Gen
Fund
Capital
26%
Grants
Capital
21%
Ent.
Funds
36%
Special
Gas Tax
6%
Art
Fund
4%
Asset
Seizure
3%
Other
4%
Total $25,194,528
ATTACHMENT 3
43
OTHER FUNDS
18
OTHER FUND ANALYSIS:
FUND ANALYSIS FOR OTHER FUNDS THROUGH MARCH 2010:
PARKING MAINTENANCE FUND — Receipts through March 2010 are only at 46% 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 lack of revenue. 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 third quarter, Operating Grants revenues are
about $700,000 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 — Through March 2010, the City has received $1,472,372 of
Capital Grant funds. So far this year 1,730,479 in funds have been expended. Capital grant
funded projects include: residential overlay, Culver Blvd repaving, Fox Hills traffic signal synchronization, and Vet-
eran’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 Develop-
ment vehicle, and two Public Works vehicles will be replaced. Funding is reimbursed to the fund monthly by Depart-
ments through an amortization schedule that ensures adequate replacement funding is available for vehicles at the
end of their useful lives.
SPECIAL GAS TAX (HIGHWAY USERS TAX) — Through the third quarter, gas tax revenue
is at 30.8% of the budgeted projections. This is due to the State delaying 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 projects funded with Gas Tax
funds.
ARTS IN PUBLIC PLACES — Through the third quarter, Art Fund receipts have exceeded
the budgeted projections of $70,000 by $23,000. No large payments have been received, but
several small payments have been made. The Art Fund is funded when developers elect not to fulfill the City’s pub-
lic 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 appropriated above the amount available.
PARKS FACILITY FUND (QUIMBY FEES) — Through March, over $190,000 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. For fiscal year 2009-10 the budgeted revenue is $35,000.
NORMAL
NEGATIVE
NEGATIVE
POSITIVE
NEGATIVE
POSITIVE
NEGATIVE
ATTACHMENT 3FINANCIAL
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 NORMAL NORMAL 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
Third Quarter 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
ATTACHMENT 4
45
Third Quarter 2009-10
AT-A-GLANCE
Economic Overview
The Good News: In March, Standard & Poor’s upgraded the Agency’s
bond rating from “A-” to “A” and affirmed their rating outlook of
“stable.” This reflects the redevelopment project areas’ strong prop-
erty values and diverse economic base. A good bond rating from S&P
will help keep future borrowing costs low for the Agency.
The Bad News: As we are now through the third quarter, there contin-
ues to be mixed economic signals. Although foreclosure activity is still
at or near record highs and credit continues to be very tight, residen-
tial home sales have increased and unsold inventory has decreased,
suggesting that the housing market is beginning to stabilize. Wall
Street has seemed to recover with the Dow hovering around 11,000,
up from a low of about 7,000 last winter, and some of the larger com-
panies have returned to profitability. However, many of those compa-
nies have made profits by cutting the bottom line, i.e. laying off and
cutting employee compensation. Consequently, unemployment has
continued to rise and consumer credit and spending has continued to
decrease. Since the U.S. economy is dependant on consumers, a sus-
tained economic recovery will not be possible without an increase in
consumption, which means people will need jobs.
Some experts are also warning of a possible mortgage meltdown for
commercial property. The economic recession has caused a lot of com-
mercial space to go vacant, and there was a large turnover in commer-
cial properties during the real estate boom, consequently, many com-
mercial property owners need to get high lease rates to cover their
debt payments. Some large commercial property investment compa-
nies have already walked away from properties and many industry ex-
perts expect more to come. The commercial loan sector is much
smaller than the residential property loan sector, so a “meltdown”
won’t have as significant of an impact on the financial industry as the
residential mortgage meltdown did, but it may be a drag none-the-less
and inhibit the economic recovery.
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 TI growth in the near future.
Revenue & Expenditure Summary
Through March, expenditures outpaced revenues by approximately $1.9 million,
or 7.5%. Since a majority of the Agency’s revenues tend to be collected in the
last 3-6 months of the fiscal year, expenditures typically outpace revenues at
this point in the fiscal year.
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 is written slightly different
from the FY 2008-09 version; however, CRA still
believes that the take is unjustified under the
State Constitution and has filed another law-
suit. On February 5, the Sacramento Superior
Court heard the case and the judge asked the
attorneys for some additional information by
March 2nd. The Judge has 90 days from March
2nd to make a ruling. He has indicated that he
will make a ruling on or before May 4th. Until
the lawsuit is resolved, redevelopment agencies
must comply with the law as written, which
means that the RDA is obligated to pay $11
million into the Supplemental Education Reve-
nue Augmentation Fund (SERAF) by May 10,
2010.
In May, staff will be presenting the Agency
Board with an option to borrow the required
SERAF payment from the Low/Moderate In-
come Housing fund available balance.
Staff will keep the Agency Board updated on
the status of the CRA’s lawsuit.
Notable Development News
• Construction is complete on the mixed
use development at 9900 Culver Blvd and
the condo units are currently for sale.
• The Westfield—Culver City expansion is
complete and open and a number of ten-
ant are undergoing improvements, which
is expected to continue for the next few
months.
• The credit crunch continues to impact
financing as many of Culver City’s devel-
opment projects continue to have diffi-
culty securing project financing.
ATTACHMENT 4
RDA BUDGET REPORT
3
CASH AVAILABLE for CAPITAL INVESTMENT
FUND BALANCE AVAILABLE FOR PROJECTS/PROGRAMS:
UNRESTRICTED REVENUE and EXPENDITURE SUMMARY: ( graphs are cumulative)
Through March, expenditures outpaced revenues by approximately $1.9 million, or 7.5%. Since a majority of the Agency’s reve-
nues tend to be collected in the last 3-6 months of the fiscal year, expenditures typically outpace revenues at this point in the fiscal
year.
REVENUES: Overall, Agency revenues have been strong, except parking revenues, which have lagged thus far (see page 11 for more
detail on Parking revenues). To date, tax increment receipts have been strong and, based on the Assessed Value report received
from the County Assessor last August, should exceed budget projections.
EXPENDITURE: The Agency’s largest single annual expenditure is Debt Service, i.e. principle 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.
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. The estimated balances include the approved budget adjustments.
Assumptions: The estimated ending balances above assume that the remaining $7 million loan from the City will be repaid in FY 2009-10 and
FY 2010-11 ($3.5 million each year with interest), the entire FY 2009-10 SERAF payment ($11M) will be borrowed from the Housing Set Aside
Fund and the FY 2010-11 SERAF payment ($2.252M) will be made from Unrestricted Funds, 100% of the adjusted FY 2009-10 and FY 2010-11
budgets are expended, and no land sale proceeds are received in FY 2009-10 or FY 2010-11.
NORMAL
Actual Actual Estimated Estimated
Ending Ending Ending Ending
2007-08 2008-09 2009-10 2010-11
Unrestricted Funds 10,770,000 16,440,000 13,230,000 7,565,000
Housing Set Aside 19,000,000 24,875,000 16,745,000 18,700,000
Tax Exempt Bonds - 1999 4,820,000 4,902,000 00
Tax Exempt Bonds - 2002 17,033,000 15,852,000 2,094,000 940,000
TOTAL RESOURCES $51,623,000 $62,069,000 $32,069,000 $27,205,000
20 09 - 1 0
Re v e n u e
2 009 - 10
E x pend it ur e
Ju l 13 7,18 6 $ 57 7,2 67 $
Au g 39 2,49 9 5 4 3 ,8 4 4
Sep 84 7,69 0 7 5 2 ,6 3 4
Oc t 25 3,37 4 6 7 2 ,4 6 8
No v 4,32 1,19 3 1 1 ,9 7 3 ,1 0 2
De c 12 ,0 06 ,8 35 5,87 7,8 24
Jan 2,06 5,23 5 1,16 2,5 33
Feb 4,28 9,20 9 4,24 1,4 62
Ma r 1,04 2,74 7 1,44 2,9 55
Ap r - -
Ma y - -
Jun - -
T O T Y -T-D 25 ,3 55 ,9 68 2 7 ,2 4 4 ,0 8 9
Adj Bud get 37 ,8 28 ,6 15 4 3 ,8 8 2 ,6 0 8
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
Millions
Cumulative RDA Revenues & Expenditures
2009-10 Revenue 2009-10 Expenditure
ATTACHMENT 4
47
RDA BUDGET REPORT
4
UNRESTRICTED FUND EXPENDITURES:
TOTAL UNRESTRICTED FUNDS EXPENDITURES: (graph is cumulative)
ADMINISTRATIVE EXPENSES: (graph is cumulative)
EXPENDITURE ANALYSIS BY CATEGORY:
Through March, the RDA has expended approximately 62% of the adjusted budget compared to 62%
in 2008-09 and 67% in 2007-08 (the same period in FY 2007-08 included land acquisition costs). Total
Agency expenditures are approximately $3.5 million under budget through March. The following sections will provide more de-
tail 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.
Through March, approximately 66% of the total Admin budget has been expended compared to 59%
last fiscal year. The Agency is expected to finish the year below budget in admin expenses. The Rede-
velopment Agency reimburses the City for City staff whose position is impacted by RDA activities (i.e. Redevelopment Division staff
and partial reimbursement for 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. Admin expenditures are relatively stable throughout the fiscal year.
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 -
May 5,313,400 6,472,168 -
Jun 3,545,668 1,459,314 -
TOT Y-T-D 39,197,317 35,002,781 27,244,091
Adj Budget 42,726,758 $ 40,131,060 $ 43,882,608 $
$(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 -
May 439,925 464,337 -
Jun 553,815 375,878 -
TOT Y-T-D 5,354,653 5,290,637 4,626,259
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
ATTACHMENT 4
RDA BUDGET REPORT
GENERAL OBLIGATION EXPENSES: (graph is cumulative)
UNRESTRICTED FUNDS EXPENDITURE ANALYSIS:
Through March, Economic Development, Property Management, and Cultural Affairs programs have
expended 38% of their adjusted budget compared to 29% in 2008-09 and 30% in 2007-08. The pri-
mary expenditures are related to costs to manage the downtown parking structures and Cultural Affairs programs. Also, despite
uncertainty in the economy, there has been an increase in local business taking advantage of rehabilitation and fee incentive pro-
grams and increased interest in business assistance loans offered by the Economic Development Division. This may signify a re-
turn 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
Through March, the RDA has expended 65% of the adjusted General Obligations budget, compared
to 70% in 2008-09 and 67% in 2007-08. Although currently under budget, a $3.8 million loan payment
(includes principle and interest) to the City is scheduled to be made in June.
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). For FY 2009-10 the State has mandated a SERAF payment in the amount of approximately $11 mil-
lion. In May, the Agency Board will be presented with an option to borrow this payment from the Housing Fund. NOTE: The CRA has
filed a lawsuit to declare this payment unconstitutional. See the Executive Summary section for more information on SERAF and the
status of the CRA lawsuit.
BELOW BUDGET
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 -
May 4,712,379 5,887,151 -
Jun 1,280,618 733,207 -
TOT Y-T-D 24,530,550 26,986,338 19,394,133
Adj Budget 25,131,668 26,606,359 29,934,078
$(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 -
May 134,492 115,826 -
Jun 496,806 327,029 -
TOT Y-T-D 1,693,106 1,675,440 1,609,471
Adj Budget 3,118,088 3,863,106 4,261,317
$(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
ATTACHMENT 4
49
RDA BUDGET REPORT
CURRENT PROJECTS: (graph is cumulative)
UNRESTRICTED FUNDS EXPENDITURE ANALYSIS:
Due primarily to economic conditions, there has been no activity in this category through March. Po-
tential Projects include expenses for opportunity sites as they arise in various parts of the City, such as
potential sites on Selmaraine Ave, Jefferson Blvd and the Hayden Tract. Typical expenses in this category are on appraisals, ex-
ploratory 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
Expenditures through March are primarily related to the Pleasantview project. When the Agency pur-
chased 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. This category is expected to finish the year under budget.
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 -
May 26,604 4,833 -
Jun 83,325 23,144 -
TOT Y-T-D 6,415,236 1,031,703 1,614,228
Adj Budget 7,086,497 2,408,056 2,601,410
$-
$1
$2
$3
$4
$5
$6
$7
Millions
Current Programs/Projects
2007-08 2008-09
2009-10 2009-10 Budget
ATTACHMENT 4
RDA BUDGET REPORT
7
UNRESTRICTED FUNDS REVENUE ANALYSIS
TOTAL UNRESTRICTED FUNDS REVENUE THROUGH MARCH 2010:
SUMMARY — Overall, revenues are relatively strong through March. Tax Increment revenues are expected to remain
strong through the end of the fiscal year. Revenues from Pacific Theaters and the Farmer’s Market are above budget projections
while Parking revenues are below projections, due primarily to economic conditions.
UNRESTRICTED REVENUES — The Redevelopment Agency received an updated Assessed Valuation Report from the County
Assessor in August indicating an increase in assessed values higher than what was originally projected for the budget. Based on
this updated AV report, estimated tax increment revenues for FY 2009-10 will be more than originally projected.
LAND SALE PROCEEDS — Due to the continuing credit crunch and significant slowdown in commercial and residential
development, no land sale proceeds are expected in FY 2009-10. The Agency continues to hold a number of parcels that are sub-
ject 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 will repay the
outstanding balance ($7 million), plus interest, from available tax increment revenues instead of land sale proceeds. The new
loan repayment schedule calls for a $3.5 million principle payment due in June 2010 and the remaining $3.5 million principle
payment due 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 -
May 4,831,876 8,312,240 -
Jun 3,042,264 2,182,718 -
TOT Y-T-D 35,937,483 42,710,089 25,355,968
Adj Budget 33,006,077 42,950,77537,828,615
$(5)
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Millions
RDA Total Revenues
2007-08 2008-09
2009-10 2009-10 Budget
ATTACHMENT 4
51
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 2006-07, 2008-09, and 2009-10
Through March, tax increment revenues are slightly ahead of budget projections. In August, the RDA re-
ceived an updated Assessed Valuation Report from the County Assessor. Based on this updated AV report,
estimated tax increment revenues for FY 2009-10 are expected to exceed the adopted budget projections in FY 2009-10.
Despite the current economic conditions, tax increment growth is expected to remain healthy in FY 2009-10 due to recently com-
pleted developments (e.g. Westfield Mall renovation, Sony parking lot, and 9900 Culver Blvd). However, due to the continuing
state of the commercial credit markets and the overall economy, TI receipts are expected to slow in FY 2010-11.
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.
2006-07
% change
prior year 2007-08
% change
prior year 2008-09
% change
prior year 2009-10
% change
prior year
Project Area 1 $741,987,037 6.51% $899,729,335 21.26% $991,903,331 10.24% $1,165,270,620 17.48%
Project Area 2 $576,349,621 9.07% $636,801,158 10.49% $696,384,724 9.36% $707,151,361 1.55%
Project Area 3 $1,284,738,339 5.25% $1,375,974,122 7.10% $1,516,215,389 10.19% $1,656,159,352 9.23%
Project Area 4 $513,029,124 6.67% $590,320,656 15.07% $635,175,732 7.60% $632,727,379 -0.39%
$3,116,104,121 6.47% $3,502,825,271 12.41% $3,839,679,176 9.62% $4,161,308,712 8.38%
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 -
May 4,684,483 7,974,511 -
Jun 1,680,351 1,041,482 -
TOTAL 31,387,713 $ 38,014,623 $ 20,652,842 $
Adj Budget 29,593,000 32,961,000 33,642,000
$-
$5
$10
$15
$20
$25
$30
$35
$40
Millions
Tax Increment - All Project Areas
2007-08 2008-09
2009-10 2009-10 Budget
ATTACHMENT 4
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
ATTACHMENT 4
53
RDA BUDGET REPORT
10
UNRESTRICTED FUNDS REVENUE ANALYSIS (continued):
REVENUE SOURCES:
Fiscal Years 2007-08, 2008-09 and 2009-10 (graphs are cumulative)
Through March, Pacific Theaters has received 78% of the budget projection (vs. 67% expected) and is per-
forming reasonably well. Despite falling short of budget projections in FY 2007-08 (due to a number of fac-
tors, including lack of quality product and increased property tax assessment), Pacific Theaters significantly exceeded budget
projections in FY 2008-09 by almost $500,000. Although the Theater is not expected to perform as well as it did in FY 2008-09,
staff expects Pacific Theaters to meet or exceed budget projections for the fiscal year based on the continued relative strength of
the movie industry in the economic downturn.
Through March, Farmers’ Market receipts have slightly outperformed budget projections (79% actual vs.
69% expected). Staff expects the Farmers’ Market to meet the budget projection of $105,000 this fiscal
year.
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
Oc t 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 -
May 3,572 176,889 -
Jun 196,961 243,767 -
TO TA L 874,211 1,759,861 1,096,450
Adj. Budget 1,200,000 1,300,000 1,400,000
Jul 11 ,23 4 $ 15,220 $ 11,023 $
Au g 14 ,15 5 12,581 11,557
Sep 10 ,42 6 8,843 11,498
Oc t 10 ,46 1 12,817 7,898
No v 11 ,37 8 9,787 8,229
Dec 4,5 22 466 3,650
Jan 5,1 18 14,223 12,367
Feb 10 ,47 2 - 7,308
Mar 9,3 30 11,219 9,277
Ap r 12 ,57 9 24,034 -
May 10 ,91 9 8,396 -
Jun 11 ,10 0 12,682 -
TO TA L 1 2 1 ,6 9 4 $ 130,268 $ 82,807 $
Adj B udget 10 5,0 00 115 ,00 0 1 05,000
$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
ATTACHMENT 4
RDA BUDGET REPORT
11
Unrestricted Funds Revenue Analysis (continued):
OTHER REVENUE SOURCES (cont.):
Fiscal 2007-08, 2008-09 and 2009-10 (graph is cumulative)
Fiscal Year 2009-10 Adopted Budget
The Redevelopment Agency’s Adopted budget is available on the City’s website at
www.culvercity.org/redev/redev_workprogram.asp?sec=gov
Budget hearings to consider the proposed FY 2010-11 Budget will be held with the City Council and Redevelopment Agency
Board in May and June. Please refer to the City’s website, www.culvercity.org, for dates and times.
Through March, parking revenues are approximately 8% below budget projections (70% actual vs. 78%
expected). This is due primarily to weakening monthly parking revenues resulting from a decrease in busi-
ness activity at the Ince parking structure.
Through March, actual Film Parking receipts of $57,500 have already exceeded the FY 2009-10 budget projection of $50,000.
Film Parking revenues are expected to exceed the budget projections by at least 20%.
NEGATIVE
OTHER NOTES:
Parking Revenues
20 07-08 2008-09 200 9-10
Jul 1 01,17 7 $ 105,496 $ 108,721 $
Au g 1 21,64 9 139,479 45,016
Sep 76,37 7 32,109 24,963
Oc t 92,72 3 58,150 144,419
No v 1 16,76 5 15,649 164,104
Dec 67,51 3 71,641 98,978
Jan 1 08,65 0 206,433 122,484
Feb 46,10 3 61,195 63,198
Mar 1 29,62 2 6,549 100,829
Ap r 43,35 3 100,265 -
May 80,25 6 66,201 -
Jun 1 06,04 7 22,402 -
TO TA L 1,0 90,23 5 $ 885,569 $ 872,712 $
Adj Budget 9 43,12 0 977,620 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
ATTACHMENT 4
55
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 are expected to exceed budget projections, consequently,
Housing Fund revenues are also expected to exceed budget projections.
EXPENDITURES — The primary Low/Moderate Income Housing expenditures through March were on Rental Assistance Pro-
gram Grants (about $36,000 per month), Rehab Grant Incentives ($67,000 through March), and administrative charges. Ap-
proximately $2.5 million is budgeted in FY2009-10 for implementation/construction of the low/moderate income housing
project at the Globe properties. The Housing Division is working toward implementing the Comprehensive Housing Strategy
and identifying development opportunities for low/moderate income 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 -
May 960,582 1,607,753 -
Jun 478,963 307,508 -
TOT Y-T-D 6,936,537 8,039,668 4,454,451
Adj Budget 6,865,000 $ 7,467,000 $ 7,327,400 $
$(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 -
May 280,090 229,912 -
Jun 915,689 807,349 -
TOT Y-T-D 3,643,706 3,391,255 2,891,690
Adj Budget 12,330,046 $ 12,607,422 $ 8,586,121 $
$(1)
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Millions
Low/Moderate Income Housing
Expenditures
2007-08 2008-09
2009-10 2009-10 Budget
ATTACHMENT 4
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 $77,500 FY 2010-11
4. Downtown Parking Study (91050) $167,000 $167,000 $140,400 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. $325,000 in interest income
is budgeted in FY 2009-10; $193,000 has been earned to date. As investments mature at different times throughout the year, in-
terest income is recognized.
EXPENDITURES — Tax Exempt Bond expenditures through March were primarily related to the Downtown Parking Study, Washing-
ton/National Engineering studies (per executed MOU with Metro), and Washington Blvd AIP, Phase 1.
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.
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 -
May 462,252 12,516 -
Jun 600,315 18,314 -
TOT Y-T-D 4,111,377 1,441,314 217,009
Adj Budget 8,019,086 $ 13,302,061 $ 18,087,011 $
$(5)
$-
$5
$10
$15
$20
Millions
Tax Exempt Bonds
Expenditures
2007-08 2008-09
2009-10 2009-10 Budget
ATTACHMENT 4
57