City of Culver City, California
City Council Agenda Item Report
J1-1
RECOMMENDATION:
Staff recommends the City Council and the Redevelopment Agency receive a
presentation on the Year-end Fiscal 2006-07 Budget.
BACKGROUND / DISCUSSION:
The Budget & Finance Office prepares quarterly, mid- year, and year-end budget
monitoring reports for the City Council and the Redevelopment Agency once the
books have been closed for the respective time periods.
City of Culver City
General Fund
Total actual General Fund expenditures at the end of Fiscal 2006-07 were $76.94
million, and total General Fund revenues were $80.14 million. The end result of the
approximately $3.2 million operating surplus was mostly due to higher than
anticipated revenues in Sales Tax and UUT revenue categories, one-time revenues
in Transient Occupancy Tax (TOT), Charges for Services, and Use of Money &
Property revenue categories, and lower than anticipated expenditures primarily due
to vacancies.
The final 2006-07 year-end budget review reflects an unreserved General Fund fund
balance of $31.9 million, or 41.4% of total General Fund operating expenditures from
2006-07. The adjusted 2007-08 budget includes approximately $4.5 million
appropriation, which is transferred from the General Fund reserve to fund capital
Meeting Date: 02/25/08 Item Number: J-1
AGENDA ITEM: Fiscal 2006-07 Year-end Financial Budget Report
Contact Person/Dept.:
Mary V. Noller, Budget Division Manager
Nick Kimball, Sr. Management Analyst
Phone Number: (310) 253-6012
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Notification 02/20/08
Department Approval:
Jeff Muir (02/19/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/19/08)
Fiscal Impact Review:
Jeff Muir (02/19/08)
City Manager Approval:
Jerry B. Fulwood (02/21/08) City of Culver City, California
City Council Agenda Item Report
J1-2
projects. The surplus realized from 2006-07 was instrumental in being able to fund
the $1.623 million Public Safety RMS capital project and an additional $1.5 million
for new Fire Station #3.
An important point should be noted that the General Fund fund balance now has
approximately $3.5 million committed to fulfill Fund 420 Capital appropriations for the
new Fire Station #3. Two-million of this amount had previously been approved per
discussion of potential pay-back opportunities. It is anticipated that approximately
$1 million may be received from the sale of the three lots on which the current Fire
Station #3 sits. There are also opportunities for the City to receive grant funding for
all, or a portion of, the $1 million that was appropriated as a loan from the General
Fund reserve. If these actions occur, the appropriated $2 million from the General
Fund reserve will be released back to the reserve; otherwise, the General Fund is
expected to provide the project funding needs.
Enterprise Funds
The Refuse Fund came in over projected revenue receipts by 1.2%, for a total of
$10.5 million. Expenditures finished the year at 88.2% of the adjusted budget, and
were $10.1 million. As a result, the fund showed an annual operating surplus of
approximately $455,000.
At the end of fiscal 2006-07, the Refuse Fund had a remaining loan amount of
$1.227 million, which is allocated as follows: $733,000 – General Fund; $428,500 –
Equipment Replacement Fund; $65,500 – Innovation Fund.
The Transit Fund finished the year over operating revenue projections at $18.51
million. This was due in part to the timely receipt and recording of federal and state
monies. Also, Transportation received funds throughout the fiscal year for an STA
Grant in the amount of approximately $1.5 million, when budgeted projections were
$250,000. Expenditures, including both operating and capital items, were 72.7% of
the adjusted budget, and were $17.56 million. A few Transit capital projects were
not completed in 2006-07 and have been carried over to fiscal 2007-08. These
projects include the CNG fueling stations and the Smart Bus project.
The Sewer Fund came in over revenue projections by approximately 3.4%. Sewer
operating appropriations were 88.5% expended, with overall Sewer appropriations
55.9% expended. Several budgeted Sewer capital projects were not completed in
fiscal 2006-07, and have been carried over to fiscal 2007-08. (Note: Several of
these projects have been completed in fiscal 2007-08.)
Self-Insurance Fund
City of Culver City, California
City Council Agenda Item Report
J1-3
The Self Insurance Fund ended fiscal 2006-07 with a relatively healthy cash reserve
balance of approximately $5 million and decreased the future liability obligation (i.e.
future value of current workers’ compensation and liability claims) by $2.4 million
compared to the balance on June 30, 2006. Despite these positive improvements,
the ultimate net costs associated with the settlement reached with the property
owners affected by the Culver Crest hill slide, including the cost to repair the hill
side, will significantly impact the fund balance of the Self Insurance fund in the
following fiscal years.
The Self Insurance fund cash reserve is projected to decrease by approximately
$3.5 million in fiscal 2007-08. During the upcoming budget process, staff will
develop a strategy to re-establish the fund reserve, and will assess if an increase in
liability reserve charges to operating departments is needed over the next few years.
Culver City Redevelopment Agency
The beginning balance for unrestricted funds in Fiscal Year 2006-07 was
approximately $23 million. The ending balance for FY 2006-07 (and beginning
balance for 2007-08) was approximately $12.5 million.
On-going revenues were strong and came in approximately $6 million over budget.
This was driven mainly by stronger than budgeted tax increment receipts
(approximately $4 million over budget), interest income (approximately $425,000
over budget), parking revenues (approximately $350,000 over budget), and Pacific
Theater income (approximately $900,000 over budget).
One-time revenues were significantly over budget (approximately $12 million). This
is the result of a number of land sale revenues that were not originally budgeted at
the beginning of the year, including 4043 Irving Place, 9900 Culver Boulevard, and a
Lindblade property (this was a pass-through for relocation assistance; a
corresponding expenditure was also recorded).
Expenditures also exceeded the adopted budget. Some expenditures, such as the
county administration fee, statutory pass through payments, and housing set-aside
are a set percentage of tax increment receipts per State redevelopment law.
Therefore, as tax increment receipts increase, there is a corresponding increase in
those expenditures, which equated to approximately $1.5 million over budget.
Additionally, the Agency purchased a large amount of land in 2006-07 amounting to
almost $23 million. The majority of this amount was related to parcels near the
Washington/National project area in anticipation of development related to the
impending Expo Light Rail regional transportation project. All together, the Agency
ran a deficit of approximately $11 million in 2006-07. City of Culver City, California
City Council Agenda Item Report
J1-4
Despite the $11 million deficit, the ending balance of $12.5 million is higher than
anticipated. In addition to the strong revenues that exceeded the budgeted amount
by $6 million, RDA staff took a number of actions to curb expenditures during the
fiscal year. Some of the actions that RDA staff took included shifting their focus to
moving along existing projects prior to exploring new projects and freezing vacant
positions through the end of the fiscal year. This resulted in a savings of
approximately $3 million.
Tax Exempt Bond Funds
The beginning balance for tax exempt funds in Fiscal Year 2006-07 was
approximately $12 million. The ending balance for FY 2006-07 (and beginning
balance for 2007-08) was approximately $23.5 million. The increased fund balance
is mainly the result of a re-allocation of funds, which will be discussed in more detail
in the following sections of this report.
The table below shows the major projects that had bond funds allocated in 2006-07,
the amount that was spent on each project in 2006-07, and the amount of funds that
were carried over to 2007-08. Since many of these projects are large capital
expenditures that span fiscal years, it is common that the expenditures are spread
among fiscal years. Therefore, any unspent funds are carried over to the following
year to maintain the funding to complete the project.
There were a number of bond funded public works street improvements projects that
were completed in 2006-07, including Culver Blvd/Keystone to Jasmine and
Washington Blvd/Elenda to Sepulveda. The remainder of the projects are still
ongoing.
Over the past few years, the Redevelopment Agency has acquired a number of
properties throughout the City in furtherance of the Redevelopment Plan. While a
number of the properties were purchased with unrestricted tax increment funds,
Program Description
Adjusted
2006-07
Budget
Actual
2006-07
Expense
Carryover
to
2007-08
Downtown Street Improvements
Washington Blvd Realignment 2,050,000 331,637 1,718,363
Town Plaza Expansion 2,850,000 0 2,850,000
Washington/National 850,000 0 850,000
Public Works Street Improvements 1,001,072 677,336 0
Fire Station #3 2,896,933 257,503 2,639,430
Total Bond Fund $9,548,005 $1,266,476 $8,057,793 City of Culver City, California
City Council Agenda Item Report
J1-5
several properties were purchased with tax exempt bond funds due to the
anticipated project/proforma structure. For the properties that utilized bond funds to
purchase the properties, there was the expectation that the residual land value from
the subsequent sale of the property would not result in a return greater than five
percent of the total bond issue (i.e. $1.5 million). Due to changes in the value and
scope of two of these projects (i.e. Baldwin Hotel Site and Washington/Centinela),
the return was projected to exceed five percent. This would violate one of the
restrictions placed on tax-exempt bond funds.
In order to avoid this situation and give the Agency flexibility in the future use and
disposition of those affected projects, it was necessary to replace the bond funds
originally used to purchase the properties with unrestricted funds. To achieve this,
unrestricted funds needed to be transferred to the tax exempt bond fund account,
which effectively decreases the amount of unrestricted funds that are available and
increases the amount of restricted tax exempt bond funds that are available.
As of July 1, 2006, there was approximately $12 million available in tax exempt bond
funds. In order to give the Agency flexibility with respects to the Baldwin Motel Site
project, the Agency approved transferring $1.7 million in unrestricted tax increment
funds to tax exempt bond funds. An additional $1.8 million was earned in interest,
which increased the available tax exempt bond funds to $15.5 million.
In May 2007, the Agency approved a $9 million loan from the City’s General Fund to
the Redevelopment Agency, which was used to substitute unrestricted funds for tax
exempt bond funds for the Washington/Centinela project area. This further
increased the available tax exempt bond funds to approximately $24.5 million. Of
this amount, approximately $10 million was appropriated for projects (see
Attachment 2). Therefore, approximately $14.5 million in tax exempt bond funds
were available to be appropriated for qualified projects at the end of fiscal year 2006-
07.
Low/Moderate Income Housing Fund
The beginning balance for Low/Moderate Income Housing Fund in Fiscal Year 2006-
07 was approximately $12.9 million. The ending balance for FY 2006-07 (and
beginning balance for 2007-08) was approximately $15.1 million. Towards the end
of FY 2006-07, Housing and Community Development staff began work developing
strategies to program the Low/Moderate Income Housing funds and develop a long
term work program, which will be presented to the Redevelopment Agency at a later
date. Initial work indicates there are sufficient projects to allocate the entire balance
of the Low/Moderate Income Housing Fund.
City of Culver City, California
City Council Agenda Item Report
J1-6
FISCAL ANALYSIS:
There is no fiscal impact from receiving this report. Final results for the General
Fund in fiscal 2006-07 were very positive, mainly due to higher than anticipated
revenues in Sales Tax and UUT revenue categories, one-time revenues in Transient
Occupancy Tax (TOT), Charges for Services, and Use of Money & Property revenue
categories, and lower than anticipated expenditures primarily due to vacancies.
General Fund Departments, for the most part, were also able to hold operating
expenditures within the 96.5% target. The General Fund reserve percentage at the
end of the fiscal year was approximately 41.4%. Overall, most funds were able to
hold spending within the restraints of available revenues or reserves.
ATTACHMENTS:
1. City Fiscal 2006-07 Year-end Budget Report
2. City Fiscal 2006-07 Year-end Expenditure Summary
3. City Fiscal 2006-07 Year-end Revenue Summary
4. Agency Unrestricted Funds Cash Flow: 2006-07 Budget vs. Actual
5. Agency Tax Exempt Bond Funds Cash Flow: 2006-07 Budget vs. Actual
MOTION:
That the City Council:
Receive and file the presentation of the Year-end Fiscal 2006-07 Budget from the
Chief Financial Officer.
That the Culver City Redevelopment Agency:
Receive and file the presentation of the Year-end Fiscal 2006-07 Budget from the
Chief Financial Officer
MEETING DATE: 2/25/08
AGENDA ITEM: Fiscal 2007-08 Mid-Year Budget Report and Adoption of Proposed
Budget Amendments
ATTACHMENTS
Pages
1. Fiscal 2007-08 City Mid-Year Budget Report 1 - 10
2. Fiscal 2007-08 City Mid-Year Revenue Summary 11 - 12
3. Fiscal 2007-08 City Mid-Year Expenditure Summary 13 - 14
4. Fiscal 2007-08 RDA Mid-year Budget Report 15 - 25
a. Unrestricted Funds Cash Flow 26 - 27
b. Tax Exempt Bond Funds Cash Flow 28 - 29
2007-2008 Budget Monitoring Report
Mid-Year Report
Introduction:
This report includes the revenue and expenditure analysis through December 31, 2007. The
revenues reported include outside revenue sources and transfers-in from other funds. The
expenditures analysis includes expenditures by fund and transfers-out to other funds. For the
purposes of this report, encumbrances have not been included as expenditures. Encumbrances
will be included when the money is actually relieved.
General Fund Summary:
For the most part, General Fund operations are in good financial health through the first six
months of 2007-08. General Fund expenditures are on track, and revenues appear to be
relatively stable through the first six months, except for Sales Tax receipts, which are lower
than anticipated. Budget staff will continue to monitor expenditures and revenues throughout
the second half of the fiscal year.
The General Fund beginning fund balance for 2007-08 is $31.9 million, which represents 41.4%
of fiscal 2006-07 operational expenditures. The ending balance for 2007-08 is projected to be
$29.3 million. If the proposed budget amendments are adopted, the projected ending General
Fund balance will be $28.8 million, which is approximately a 33.8% reserve. The ending fund
balance assumes the $9 million loan to the Redevelopment Agency will be fully repaid this fiscal
year.
Summary of Revenues
General Fund revenue receipts to date are approximately 33.3% of the estimated budget
amount. Last year at this time, the revenue receipts for the General Fund were 37.5%.
The three year average revenue receipts at mid-year is approximately 34.8%.
As illustrated in Chart 1, approximately $27.5 million has been collected through
December 2007 compared to $28.1 million in 2006. One factor in this drop from last year
are one-time classified revenues, such as a Transient Occupancy Tax (TOT) bankruptcy
settlement, recorded in December 2006 that skews the comparison. Revenues in
general, though, are lower than anticipated at mid-year. The “Revenue Detail” section
below provides a more in depth discussion and analysis of General Fund revenues.
Summary of Expenditures
General Fund Expenditure Target: 48.25%
To date, General Fund departments have expended 45.6% of the adjusted budget as
compared to 46.9% last fiscal year. The three year average for percent expended at mid-
year is approximately 45.6%.
As illustrated in Chart 2, approximately $38.3 million has been expended through
December 2007 compared to $36.3 million in 2006. The major factor in this increase is
the transfer of funds (approximately $1.5 million more than last year this time) from the
General Fund Fund Balance to the I & A Fund to fund capital projects. The “Expenditure
Detail” section provides a more in depth discussion and analysis of General Fund
expenditures.
Page 1 of 29 2
General Fund Analysis:
Revenue Detail
Revenue receipts through the first half of fiscal 2007-08 are sluggish compared to growth
between mid-year receipts of 2005-06 and 2006-07. Except for Charges for Services (which is
partially higher due to Council approved fee increases), Interfund/Departmental Charges, and
Other Revenue, almost all other categories are lower than, or show little growth over, mid-year
receipts of fiscal 2006-07. The following charts and narrative detail the categories
increase/decrease over the prior mid-year receipts:
Increases
Revenue Description
Mid-year
Receipts
2006-07
Mid-year
Receipts
2007-08
$$
Increase/
from fiscal
2006-07
%
Increase/
from fiscal
2006-07
Business Tax $ 502,952 $ 521,653 $ 18,701 3.6%
Commercial/Ind. Tax $ 193,002 $ 229,345 $ 36,343 15.8%
Licenses & Permits $ 807,809 $ 977,676 $ 169,867 17.4%
Charges for Services $4,209,776 $4,820,278 $ 610,502 12.7%
Fines & Forfeitures $2,247,297 $2,291,549 $ 44,252 1.9%
Interfund/Departmental $2,581,122 $2,823,944 $ 242,822 8.6%
Other Revenues $ 54,919 $ 358,491 $ 303,572 84.7%
Transfers $ 719,467 $ 728,400 $ 8,933 1.2%
Business Tax – Receipts to date for this category are slightly ahead of last year at
this time. The bulk of revenue receipts for Business Tax are received in February
and March of a fiscal year. There is no indication at this time that this revenue will
not meet the budgeted projection. The percentage of receipts received to date is
5.7% of the budgeted amount, which is also the same as this time last year.
Commercial/Industrial Tax – This is a fee levied on construction valued at
$250,000 or more. The adopted fiscal 2007-08 budget anticipates some large new
development collections that will be treated as one-time funding. This category
brings in a range of amounts of development fees. Large projects, such as the
expansion and renovation of Westfield and new building construction on the Sony
lot, are not considered “routine” and monies for these are treated as “one-time.”
These receipts are used to pay for one-time operating enhancements, or set-aside in
the General Fund fund reserve to be used for Capital Projects during the next fiscal
year’s budget process. Through mid-year, receipts in this category are only 22.9%
of projections. We are ahead of last year’s mid-year actuals, and expect to meet
projections during the second half of the fiscal year.
Licenses and Permits – This revenue category is ahead of last year’s receipts at
this time, and is currently 40.8% of adjusted budget projections. This category of
revenue includes permits such as building, electric, plumbing and heating, and with
known new development activity occurring this fiscal year, it will meet its estimated
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budget projection at year end. These permits are a large portion of the $2.3 million
budgeted revenue amount in this category.
Charges for Services – This category is significantly up from the same period last
year, specifically due to fees and charges increases approved by the City Council in
April 2007. The City had not performed a fee study in several years, and an outside
consultant was hired to do the study and ultimately recommended several fees and
charges adjustments. These fees and charges adjustments went into affect on July
1, 2007. It is difficult to determine at this time specifically how much is due to the
fees and charges increase, and how much may be due to increased, or decreased,
activity. A full analysis will be performed at the end of the fiscal year, but revenue
projections will meet their budgeted target in this category.
Court Fines and Vehicle Code Fines – Fines and forfeits are slightly ahead of last
year at this time, and are 51.9% of the adjusted budget amount. There is nothing
out of the ordinary to report, and this category will meet projections.
Interfund/Departmental – This category reflects the administrative cost allocation
charges from other funds, including enterprise funds. Increases from last year
include normal cost of business increases and negotiated personnel cost increases.
Other Revenues – Miscellaneous revenue collected by Divisions is included in this
category. This category includes revenues from the Fiesta La Ballona event that
was not budgeted during the budget process, which inflates the current year actual
amount over last year. There is also an amount from a “trust” that is being reflected
in this category until approved arrangements can be made for the use of the funds.
Budgeted projections include the final payment from the Warner Lot sale this fiscal
year in the amount of $2.62 million.
Transfers – Transfers from other funds are recorded in the General Fund on a
monthly basis. Revenues in this category will meet budgeted projections.
Decreases
Revenue Description
Mid-year
Receipts
2006-07
Mid-year
Receipts
2007-08
$$
(Decrease)
from fiscal
2006-07
%
(Decrease)
from fiscal
2006-07
Property Tax $1,152,771 $1,144,730 $ (8,041) (0.7%)
Sales Tax $4,683,456 $4,515,700 $(167,756) (3.7%)
Public Safety Sales Tax $ 122,719 $ 122,104 $ (615) (0.5%)
Franchise Tax $ 252,011 $ 98,109 $(153,902) (156.9%)
Real Property Transfer Tax $1,311,167 $ 891,215 $(419,952) (47.1%)
Utility Taxes $6,214,674 $6,026,806 $(187,868) (3.1%)
Transient Occupancy Tax $1,804,523 $1,208,294 $(596,229) (49.3%)
Intergovernmental $ 183,199 $ 109,996 $ (73,203) (66.6%)
Use of Money & Property $1,020,762 $ 612,235 $(408,527) (66.7%)
Page 3 of 29 4
Property Tax – For fiscal year 2007-08, revenues receipts are almost identical to
the amount received this time last year. Anticipated increased property taxes have
not materialized due to the housing slump, but it is anticipated that revenues in this
category will reach, or come close, to projections. Since Culver City’s property tax
share is low, we are not as significantly affected by the downturn in the housing
market as some other agencies – including the State.
Sales Tax – For fiscal year 2007-08, actual sales tax receipts are down
approximately 3.7% from the same period last year. Due to the current economic
trends, it is not expected the City will realize the adopted 2007-08 projected sales
tax amount. It is being recommended to reduce the adopted 2007-08 sales tax
revenue amount from $18,800,000 to $18,300,000. This recommendation is based
on many factors, such as: the trend of revenue receipts to date; current economic
trends affecting consumer spending, which continues to show as sluggish; effects of
the Writer’s Guild strike on the local economy; the closing of a car dealership, which
was not factored in when calculating the adopted revenue projection; and a revised
“downward” estimate from our City’s Sales Tax auditors, which shows a significant
gap between our budgeted amount and estimated receipts based on their analysis.
It is important to note that the “triple flip” payments for Sales Tax are received in
January and May of each fiscal year. The City is expecting approximately $4.7
million (half paid in January, and half paid in May), and these payments will be
reflected in the upcoming monthly budget monitoring reports to the City Council and
the fiscal 2007-08 year-end report.
Public Safety Sales Tax – Receipts to date for this revenue are less than last year
at mid-year. It is anticipated, though, that receipts will hit the adopted revenue
amount at the end of the fiscal year.
Franchise Tax – Actual receipts to date are dramatically down from last year at this
time, specifically because of a receipt of the Time Warner Franchise Fee ($187,000)
in October of 2006. Normally, only a minimal amount of monies are collected in the
first seven months of the fiscal year, and an “out of the ordinary” payment can throw
off a comparison. The majority of Franchise Tax payments occur during February
through June of a fiscal year, and it is anticipated that we will meet budgeted
projections in this category.
Real Property Transfer Tax – Actual receipts are down almost 50% from this same
period last year. Part of this is attributable to one-time monies from audit findings
that were deposited in the first half of fiscal 2006-07. With the downturn in the
housing market, the sale of property has slowed considerably. As of December 31,
2007, the percentage of receipts received per projected budget is 43.5%. Although
this is lower than expected, staff believes receipts will hit projections in this category.
Utility User’s Tax – To date, receipts are at 44.1% of projections compared to
46.4% at this time last year. Each UUT category (electric, gas, water,
telecommunications, and cable) is behind last year’s actual receipts at this same
Page 4 of 29 5
time. We will be working closely with our auditors on this issue. Approximately 67%
of Gas UUT receipts are received in the second half of the fiscal year.
Transient Occupancy Tax – A majority of the increased receipts from last year over
this year at mid-year are the result of a bankruptcy settlement received by the City.
These funds were received and deposited in December 2006. As of December 31,
2007, TOT receipts are 48.3% of budgeted projections, and are on-line to meet
projections.
Intergovernmental – Actual receipts are down from last year at this time, but
approximately 92% of this category is received in the second half of the fiscal year
when the State Motor Vehicle License Fee is received by the City. Payments are
received in January and May of each year, and this revenue category will meet
budget projections.
Use of Money and Property – This category is behind last year at this time, but is
expected to meet end of year projections. Interest Income is a portion of this
revenue category and is on track with projections. A revenue in this category from
last year, Interest Income on Notes Receivable, is no longer relevant this year and is
one reason this year lags behind. The remainder of the decrease from last year is in
Net Increase/Decrease Fair Value. These accounts are used by Accounting through
the year to record various entries required per GASB 31, and will change at the end
of the fiscal year. Fiscal 2006-07 shows a mid-year amount of $355,187, while the
fiscal 2007-08 mid-year amount is $104,001. It is difficult to analyze what the
outcome of this category will be, but as long as the “Fair Value” amount stays
positive, this category is on track to meet projections.
Expenditure Detail
Currently, the City Manager’s Department is exceeding the 96.5% spending
assumption, and the Fire Department is right on the line.
1. Through December, the City Manager’s Department has expended 50.5% of the
adjusted budget. This increase is partly attributable to inflated regular salaries in
the first two months of the fiscal year. During the 2007-08 budget process, three
positions were reduced from the City Manager’s Division. One of these positions
was filled, and the employee was being paid from the Division for the first two
months of the fiscal year during the transition, although no budget amount was
appropriated. (The employee ultimately decided to leave City employ.) The other
was a contract employee, Interim Financial Officer, who also was paid from regular
salaries for the first two months, with no corresponding budget amount. If these
salary payments were not included, expenditures at mid-year for the City
Manager’s Office would be 49.0%, which would put them well below the
expenditure target.
2. Through December, the Fire Department has expended 48.2% of the adjusted
budget. Much of this is attributable to personnel costs (constant staffing) that were
expended during the wildfires, which occurred in So. California in the fall of 2007.
Page 5 of 29 6
It is anticipated, though, the Department will come in within the 96.5% spending
assumption at the end of the fiscal year.
Additionally, eight (8) General Fund divisions are currently exceeding the 48% target
(excluding recreation programs, which are seasonal). Although these divisions are
slightly above their expenditure targets, each respective department is within, or close
to (Fire), the 48% budget target.
• Micrographics has expended 51.3% of their adjusted budget. The Records
Management Coordinator position is funded 60% in the City Clerk’s Division and
40% in the Micrographic’s Division. Charges to some of the personnel cost
accounts do not reflect this percentage breakdown, and will be corrected. This
Division will meet the 96.5% spending assumption target at the end of the year.
• Office of the Police Chief has expended 53.2% of the adjusted budget amount at
mid-year. This is primarily due to MOU adjustments for the Police Management
Group, of which two out of the three employees in the Division belong. The Police
Management labor negotiations were the only negotiations still open going into
fiscal 2007-08. Because it was unknown what the final negotiation contract would
be, an estimated amount of funding based on discussions to date was set aside in
the contingency account in Non-Departmental. Funding will be transferred from
the contingency account at the end of the fiscal year when other adjustments,
such as retirement payoffs, are also performed.
• Police Communications has expended 49.5% of its adjusted budget. The major
factor is expending of overtime due to vacancies. Also, on average, more
overtime is expended in the first half of the fiscal year than the second half.
Overall, the Police Department is at 46.2% of adjusted budget at mid-year,
and is expected to finish the year below the 96.5% spending assumption.
• Office of the Fire Chief has expended 49.7% of its adjusted budget. There were
expenses in other contractual services in the Maintenance and Operations
category that were fully expended in the first six months of the fiscal year, which
inflated the percentage. If these expenses were prorated over the entire fiscal
year, the percent of adjusted budget expended would be 47.9%.
• Fire Suppression has expended 56.7% of their adjusted budget. This is due to
some crossover in personnel expenses between the Fire Suppression division and
the EMS division. The EMS division is well under the target (35.3%). A major
factor has been the increase in constant staffing, especially during the period of
wildfires occurring this fall in So. California.
• Fire Prevention has expended 48.9% of their adjusted budget. This is slightly
over the target, and the division is still on target to meet the 96.5% spending
assumption. Overall, the Fire Department is expected to meet the 96.5%
spending assumption.
• Public Works Administration has expended 50.8% of their adjusted budget.
Some expenses that occurred in the first six months have slightly inflated the
percentage. Overtime has also been expended with no amount budgeted for it.
Budget savings in other divisions in the Public Works Department will be able to
cover the overtime expenditure cost in this division.
• Maintenance Operations has expended 51.1% of their adjusted budget. Over
time is being expended, and no budget was adopted for this expenditure. Budget
Page 6 of 29 7
savings in other divisions in the Public Works Department will be able to cover the
overtime expenditure cost in this division. Budget staff will work with Public Works
staff to identify overtime needs and, if necessary, budget accordingly. The Public
Works Department will be the 96.5% spending assumption.
All other General Fund expenditures appear to be on-track.
Conclusion/Summary:
General Fund recurring revenue is going to be very tight this budget year, especially
Sales Tax receipts. There will be additional one-time monies from new development
activity that were not anticipated this fiscal year, which will help make up the variance.
Overall, General Fund expenditures are expected to come in below the 96.5% assumption
spending limit, mainly due to vacancies during the fiscal year. This will help ease the
burden on the General Fund due to less than stellar activity in some major revenue
categories.
Budget & Finance staff will continue to monitor the revenue and expenditure trends monthly and
inform departments and the City Council of any significant changes.
Internal Service Funds Summary
There are no significant budgetary issues in the Equipment Replacement,
Equipment Maintenance & Fleet Services, and Central Stores funds at this time. The
Equipment Replacement Fund has issued a PO for the purchase of six (6) automated
Refuse vehicles, which were approved for purchase this fiscal year. Annual “amortized”
contributions from the Refuse Fund for prior refuse vehicles enabled the fund to have
sufficient monies to purchase the vehicles outright. Staff from the Equipment
Maintenance & Fleet Services Division will keep the City Council apprised of the progress
of this purchase.
The Self Insurance Fund had a beginning cash balance for 2007-08 of approximately $5
million; however, the Self Insurance Reserve Fund will be significantly reduced by
almost $4 million due to costs related to the Culver Crest hillside litigation. Additionally,
pending General Liability costs may further impact the fund balance.
• Staff will develop a strategy to re-establish the fund reserve, and will assess if an
increase in liability reserve charges to operating departments is needed over the
next few years.
• Workers’ compensation and insurance costs are expected to meet the current
budget.
Enterprise Funds Summary
There are no significant budgetary issues in the Transit and Sewer Funds at this time.
• The Transit Fund revenue receipts are on track (34% collected this year vs. 36%
collected last year) and expenditures are 47% of the adjusted budget. Some large
capital projects the department has been working on for the past couple of fiscal
years (AVL project, CNG fueling stations) are seeing some significant headway,
and the expending of carried-over operating funds is being realized this fiscal year.
Page 7 of 29 8
• The Sewer Fund revenue receipts are on track (44% collected this year vs. 43%
collected last year) and expenditures are 41% of the adjusted budget (excluding
capital projects).
The Refuse Fund revenue receipts are on track (45.6% collected this year vs. 48.2%
collected last year) and expenditures are 40% of the adjusted budget.
• The outstanding Refuse Fund Loan amount will be approximately $1.15 million at
the end of fiscal 2007-08. Of this amount, $686,500 is owed the General Fund,
$401,400 to the Equipment Replacement Fund, and $61,400 to the Innovation
Fund.
Other Fund Highlights:
At mid-year, all other funds are on track with anticipated mid-year projections. Budget staff will
continue to monitor these funds on a regular basis and inform City Council of any significant
changes.
Economic Update:
Select economic data from December 2007:
• Overall: The final fourth quarter real gross domestic product (GDP) numbers showed that
the U.S. economy grew by 0.6%, as compared to 4.9% in the third quarter and 3.8% in the
second quarter. Overall, the GDP grew 2.2% in 2007, the slowest rate in five years.
o The job market in LA County and is showing signs of economic strain as the seasonally
adjusted unemployment rate for the County was 5.2% in December 2007, which is up
from 4.7% a year ago. The State unemployment rate is also struggling with effects of
from the uncertainty of the economy, and the December 2007 rate was 6.1% as
compared to 4.8% a year ago. The U.S. unemployment rate for December 2007 was
5.0%.
• Real Estate/Housing Market: The national housing market has taken a dramatic turn from
a few years ago when housing was growing at an enormous rate. Following years of steep
increases, 2007 saw the market retreat and foreclosures take the lead over new home sales.
Economic projections for the housing market do not forecast much good news for 2008.
Sales are predicted to stay relatively flat, and prices are expected to remain stable or
experience modest decreases. The Los Angeles Westside is a highly desirable location, and
it is likely home prices will remain stable for the most part. The economy will continue to feel
the effects from the sub-prime mortgage fallout throughout 2008, and reduced consumer
spending is also expected as a result of the slowing economy.
• Inflationary Trends: During December 2007, the Federal Reserve Bank reduced rates by
half a point. In January 2008, they reduced the rate twice, half a point each time, in an
aggressive effort to head of a potential recession. It is too early to tell if these efforts will
have the effect on the economy that is intended.
Page 8 of 29REVENUE AND EXPENDITURE CHARTS
CHART 1
-$10,000,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
July
August
September
October
November
December
January
February
March
April
May
June
General Fund Revenues Collected Year to Date
2006-07 2007-08
CHART 2
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
July
August
September
October
November
December
January
February
March
April
May
June
General Fund Expenditures Year to Date
2006-07 2007-08
9
Page 9 of 29CHART 3
-$2,000,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
July
August
September
October
November
December
January
February
March
April
May
June
General Fund Revenues Collected by Month
2006-07 2007-08
CHART 4
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
July
August
September
October
November
December
January
February
March
April
May
June
General Fund Expenditures by Month
2006-07 2007-08
10
Page 10 of 29CITY OF CULVER CITY
SUMMARY OF REVENUES
COMPARISON OF MID-YEAR FISCAL 2006-07 AND 2007-08
ATTACHMENT 2
MID-YEAR MID-YEAR PROPOSED PROPOSED
ADOPTED ADJUSTED MID-YEAR PERCENT ACTUAL ADOPTED ADJUSTED MID-YEAR PERCENT BUDGET ADJUSTED
BUDGET BUDGET RECEIPTS RECEIVED RECEIPTS BUDGET BUDGET RECEIPTS RECEIVED REVISION BUDGET
2006-07 2006-07 2006-07 2006-07 2006-07 2007-08 2007-08 2007-08 2007-08 2007-08 2007-08
GENERAL FUND
PROPERTY TAX 3,048,000 3,048,000 1,152,771 37.8% 3,205,574 3,266,000 3,266,000 1,144,730 35.0% 0 3,266,000
SALES TAX 17,650,000 17,650,000 4,683,456 26.5% 18,198,893 18,800,000 18,800,000 4,515,700 24.0% (500,000) 18,300,000
PUBLIC SAFETY SALES TAX 361,000 361,000 122,719 34.0% 369,193 377,245 377,245 122,104 32.4% 0 377,245
BUSINESS TAX 8,804,100 8,804,100 502,952 5.7% 9,183,833 9,144,000 9,144,000 521,653 5.7% 0 9,144,000
FRANCHISE TAX 1,200,000 1,200,000 252,011 21.0% 1,253,283 1,224,000 1,224,000 98,109 8.0% 0 1,224,000
REAL PROP.TRANS TAX 2,517,000 2,648,942 1,311,167 49.5% 2,965,289 2,050,000 2,050,000 891,215 43.5% 0 2,050,000
UTILITY TAXES 13,380,000 13,380,000 6,214,674 46.4% 13,891,149 13,656,000 13,656,000 6,026,806 44.1% 0 13,656,000
TRANS OCC TAX 2,100,000 2,100,000 1,804,523 85.9% 3,224,328 2,500,000 2,500,000 1,208,294 48.3% 0 2,500,000
COM/IND DEV TAX 372,640 372,640 193,002 51.8% 558,648 1,000,000 1,000,000 229,345 22.9% 0 1,000,000
LICENSES AND PERMITS 1,479,551 1,482,051 807,809 54.5% 1,679,605 2,396,000 2,398,500 977,676 40.8% 0 2,398,500
INTERGOVERNMENTAL 2,942,670 2,952,670 183,199 6.2% 3,061,890 2,980,600 2,980,600 109,996 3.7% 0 2,980,600
CHARGES FOR SERVICES 8,450,919 8,450,919 4,209,776 49.8% 9,115,583 9,444,477 9,598,195 4,820,278 50.2% |10 10|9,598,195
FINES AND FORFEITS 4,370,000 4,370,000 2,247,297 51.4% 4,542,779 4,415,000 4,415,000 2,291,549 51.9% 0 4,415,000
USE OF MONEY & PROPERTY 954,000 954,000 1,020,762 107.0% 1,817,041 1,103,000 1,103,000 612,235 55.5% 0 1,103,000
INTER FUND/DEPARTMENTAL 5,574,047 5,574,047 2,581,122 46.3% 5,410,063 5,872,231 5,872,231 2,823,944 48.1% 0 5,872,231
OTHER REVENUES 107,690 112,190 54,919 49.0% 170,814 2,738,304 2,738,304 358,491 13.1% 0 2,738,304
TRANSFERS 1,438,866 1,440,804 719,467 49.9% 1,490,209 1,456,800 1,461,300 728,400 49.8% 0 1,461,300
TOTAL GENERAL FUND 74,750,483 74,901,363 28,061,626 37.5% 80,138,174 82,423,657 82,584,375 27,480,525 33.3% (500,000) 82,084,375
BUILDING SURCHARGE FUND 50,000 50,000 48,863 97.7% 100,388 92,500 92,500 55,618 60.1% 0 92,500
GRANTS OPERATING FUND 1,154,296 2,605,573 677,470 26.0% 2,522,488 1,140,060 1,379,767 633,760 45.9% 0 1,379,767
CDBG - OPERATING GRANT FUND 78,712 78,712 21,320 27.1% 66,622 72,780 72,780 5,891 8.1% 0 72,780
CDBG - CAPITAL GRANT FUND 58,292 84,397 171,654 0.0% 288,492 236,585 236,585 177,113 74.9% 0 236,585
PROP A LOCAL RETURN FUND 632,343 632,343 296,295 46.9% 698,240 669,442 669,442 284,998 42.6% 0 669,442
PROP C LOCAL RETURN FUND 974,017 974,017 262,978 27.0% 615,476 542,911 542,911 191,942 35.4% 0 542,911
ASSET SEIZURES FUND 0 0 34,690 0.0% 98,340 60,000 60,000 118,846 198.1% 0 60,000
SECTION 8 HOUSING 2,554,548 2,554,548 1,365,001 53.4% 2,509,632 2,533,896 2,533,896 917,023 36.2% 0 2,533,896
FISCAL 2006-07 FISCAL 2007-08
Page 11 of 29CITY OF CULVER CITY
SUMMARY OF REVENUES
COMPARISON OF MID-YEAR FISCAL 2006-07 AND 2007-08
ATTACHMENT 2
MID-YEAR MID-YEAR PROPOSED PROPOSED
ADOPTED ADJUSTED MID-YEAR PERCENT ACTUAL ADOPTED ADJUSTED MID-YEAR PERCENT BUDGET ADJUSTED
BUDGET BUDGET RECEIPTS RECEIVED RECEIPTS BUDGET BUDGET RECEIPTS RECEIVED REVISION BUDGET
2006-07 2006-07 2006-07 2006-07 2006-07 2007-08 2007-08 2007-08 2007-08 2007-08 2007-08
FISCAL 2006-07 FISCAL 2007-08
ENTERPRISE FUNDS
REFUSE FUNDS 10,410,618 10,410,618 5,022,074 48.2% 10,532,475 11,483,841 11,483,841 5,233,621 45.6% 0 11,483,841
MUNICIPAL BUS 16,025,724 16,025,724 5,808,446 36.2% 18,510,625 17,004,756 17,004,756 5,801,871 34.1% 0 17,004,756
SEWER FUND 8,598,900 8,598,900 3,656,867 42.5% 8,892,265 9,121,750 9,121,750 4,009,235 44.0% 0 9,121,750
LANDSCAPE MAINT. DIST 47,000 47,000 22,860 48.6% 56,267 47,000 47,000 21,556 45.9% 0 47,000
TOTAL ENTERPRISE FUNDS 35,082,242 35,082,242 14,510,247 41.4% 37,991,632 37,657,347 37,657,347 15,066,283 40.0% 0 37,657,347
CAPITAL IMPROVEMENT FUNDS
ARTS IN PUBLIC PLACES 129,000 129,000 163,706 126.9% 346,492 317,000 317,000 44,682 14.1% 0 317,000
NEW DEV. IMPACT FEE FUND 3,000 3,000 5,026 167.5% 7,671 0 0 4,957 0.0% 0 0
SPECIAL GAS TAX FUND 750,000 750,000 273,270 36.4% 784,259 756,000 756,000 258,599 34.2% 0 756,000
PARK FACILITIES FUND 5,000 5,000 26,887 537.7% 73,869 40,000 40,000 76,953 192.4% 0 40,000
CAPITAL IMPV/ACQ FUND 1,429,000 2,065,372 1,204,760 58.3% 2,102,402 3,792,000 8,489,109 3,509,962 41.3% 0 8,489,109
PARKING IMPROVEMENT FUND 822,200 822,200 479,407 58.3% 1,086,203 944,000 944,000 533,143 56.5% 0 944,000
GRANTS CAPITAL FUND 0 1,042,298 512,627 49.2% 2,349,067 1,929,800 1,929,800 24,255 1.3% 0 1,929,800
TOTAL CAPITAL IMPROVEMENT FUNDS 3,138,200 4,816,870 2,665,683 55.3% 6,749,963 7,778,800 12,475,909 4,452,551 35.7% 0 12,475,909
INTERNAL SERVICE FUNDS
EQUIPMENT REPLACEMENT 1,896,851 1,896,851 1,129,050 59.5% 2,196,112 2,042,736 2,042,736 1,055,127 51.7% 0 2,042,736
EQUIPMENT MAINTENANCE 6,212,059 6,212,059 3,035,156 48.9% 6,409,769 6,966,954 6,966,954 3,528,932 50.7% 0 6,966,954
SELF INSURANCE 7,515,002 7,515,002 3,979,359 53.0% 7,876,594 7,270,014 7,274,613 3,728,283 51.3% 0 7,274,613
STORES 1,422,250 1,422,250 792,190 55.7% 1,523,077 1,674,450 1,674,450 741,701 44.3% 0 1,674,450
INNOVATION FUND 11,412 11,412 13,621 119.4% 28,609 4,588 4,588 9,154 199.5% 0 4,588
TOTAL INTERNAL SERVICE FUNDS 17,057,574 17,057,574 8,949,376 52.5% 18,034,161 17,958,742 17,963,341 9,063,197 50.5% 0 17,963,341
TOTAL OPERATING AND
CIP FUNDS 135,530,707 138,837,639 57,065,203 41.1% 149,813,608 151,166,720 156,268,853 58,447,747 37.4% (500,000) 155,768,853
LESS: INTERNAL SERVICE FUNDS 17,057,574 17,057,574 8,949,376 52.5% 18,034,161 17,958,742 17,963,341 9,063,197 50.5% 0 17,963,341
TOTAL BUDGET 118,473,133 121,780,065 48,115,827 39.5% 131,779,447 133,207,978 138,305,512 49,384,550 35.7% (500,000) 137,805,512
Page 12 of 29CITY OF CULVER CITY
SUMMARY OF EXPENDITURES
COMPARISON OF MID-YEAR 2006-07 AND 2007-08
ATTACHMENT 3
MID-YEAR YEAR END MID-YEAR PROPOSED PROPOSED
ADOPTED ADJUSTED MID-YEAR PERCENT ACTUAL ADOPTED ADJUSTED MID-YEAR PERCENT BUDGET ADJUSTED
BUDGET BUDGET EXPENDITURE EXPENDED* EXPEND BUDGET BUDGET EXPENDITURE EXPENDED* REVISION BUDGET
2006-07 2006-07 2006-07 2006-07 2006-07 2007-08 2007-08 2007-08 2007-08 2007-08 2007-08
GENERAL GOVERNMENT
CITY COUNCIL 210,897 265,161 89,033 33.6% 189,132 278,329 336,948 92,176 27.4% 0 336,948
CITY MANAGER 1,000,490 1,051,213 476,957 45.4% 1,042,487 1,009,485 1,066,459 538,613 50.5% 0 1,066,459
CITY CLERK 382,660 428,616 218,096 50.9% 416,673 509,033 509,033 183,910 36.1% 0 509,033
CITY TREASURY 2,806,112 3,115,891 1,515,532 48.6% 2,962,342 3,123,867 3,307,753 1,274,043 38.5% 0 3,307,753
CITY ATTORNEY 1,896,541 1,999,108 857,876 42.9% 1,925,194 1,723,067 1,746,247 779,643 44.6% 0 1,746,247
ADMIN/BUDGET & FINANCE 1,119,484 1,186,051 521,306 44.0% 1,163,842 1,346,237 1,392,163 514,910 37.0% 0 1,392,163
PERSONNEL 957,208 1,058,410 482,738 45.6% 1,111,762 1,112,075 1,141,974 536,668 47.0% 0 1,141,974
INFORMATION TECH. 2,654,587 2,831,034 1,289,091 45.5% 2,577,749 3,034,211 3,153,623 1,365,937 43.3% 0 3,153,623
TOTAL GENERAL GOVERNMENT 11,027,979 11,935,484 5,450,629 45.7% 11,389,181 12,136,304 12,654,200 5,285,900 41.8% 0 12,654,200
PARKS, REC. & COMMUNITY SVCS 6,174,663 6,394,103 2,897,508 45.3% 6,271,371 6,864,988 7,038,358 3,068,214 43.6% 25,300 7,063,658
POLICE DEPARTMENT 27,429,735 28,030,931 13,200,653 47.1% 27,612,692 28,385,399 28,464,960 13,159,592 46.2% 0 28,464,960
FIRE DEPARTMENT 13,771,360 14,386,792 6,750,499 46.9% 14,019,593 14,540,504 14,566,867 7,047,576 48.4%
32,850
14,599,717
COMMUNITY DEVELOPMENT 5,850,224 6,205,870 2,722,359 43.9% 5,656,226 7,131,365 7,479,735 2,980,716 39.9% 0 7,479,735
PUBLIC WORKS 8,193,357 8,569,275 3,734,734 43.6% 8,242,887 9,317,108 9,427,907 3,942,780 41.8% 0 9,427,907
NON-DEPARTMENTAL 4,983,050 3,298,737 950,562 28.8% 2,519,698 3,987,650 3,887,450 1,120,577 28.8% 0 3,887,450
Transfers 1,238,071 1,249,143 614,922 49.2% 1,223,884 1,338,504 4,495,532 2,239,072 49.8% 0 4,495,532
Projected excess appropriations (2,650,000) (2,650,000) 0.0% 0 (2,805,835) (2,805,835) 0 0% 0 (2,805,835)
TOTAL GENERAL FUND 76,018,439 77,420,335 36,321,866 46.9% 76,935,532 80,895,987 85,209,174 38,844,427 45.6% 58,150 85,267,324
TOTAL OPERATING GRANTS FUND 1,154,296 2,103,043 1,076,376 51.2% 1,987,499 1,127,061 1,371,119 604,137 44.1% 0 1,371,119
CDBG OPERATING FUND 78,712 78,712 41,449 52.7% 66,623 72,780 72,780 20,997 28.8% 0 72,780
TOTAL SEC. 8 FUND 2,503,325 2,527,580 864,744 34.2% 1,712,655 2,574,648 2,584,943 855,289 33.1% 0 2,584,943
TOTAL PROP A FUND 632,343 632,343 316,170 50.0% 632,340 669,442 669,442 327,221 48.9% 0 669,442
TOTAL PROP C FUND 974,017 974,017 272,094 27.9% 767,187 542,911 592,911 279,277 47.1% 0 592,911
TOTAL ASSET SEIZURE FUND 0 953,154 3,232 0.3% 41,075 60,000 948,255 152,849 16.1% 0 948,255
TOTAL OPERATING 81,361,132 84,689,184 38,895,931 45.9% 82,142,911 85,942,829 91,448,624 41,084,197 44.9% 58,150 91,506,774
FISCAL 2006-07 FISCAL 2007-08
2/18/2008 8:36 AM
Page 13 of 29CITY OF CULVER CITY
SUMMARY OF EXPENDITURES
COMPARISON OF MID-YEAR 2006-07 AND 2007-08
ATTACHMENT 3
MID-YEAR YEAR END MID-YEAR PROPOSED PROPOSED
ADOPTED ADJUSTED MID-YEAR PERCENT ACTUAL ADOPTED ADJUSTED MID-YEAR PERCENT BUDGET ADJUSTED
BUDGET BUDGET EXPENDITURE EXPENDED* EXPEND BUDGET BUDGET EXPENDITURE EXPENDED* REVISION BUDGET
2006-07 2006-07 2006-07 2006-07 2006-07 2007-08 2007-08 2007-08 2007-08 2007-08 2007-08
FISCAL 2006-07 FISCAL 2007-08
ENTERPRISE AND USER FEE FUNDS ***
TOTAL REFUSE 10,810,594 11,403,923 4,640,973 40.7% 10,047,895 11,712,676 12,098,967 4,897,345 40.5% 16,420 12,115,387
TOTAL TRANSIT 17,505,550 24,155,438 9,045,338 37.4% 17,473,091 18,350,584 24,779,202 11,593,128 46.8% 291,420 25,070,622
TOTAL SEWER 10,263,767 14,669,770 3,857,974 26.3% 8,088,536 9,976,940 14,915,025 4,802,484 32.2% 16,420 14,931,445
TOTAL LANDSCAPE 47,000 47,000 23,500 50.0% 47,000 47,000 47,000 23,500 50.0% 0 47,000
TOTAL ENTERPRISE 38,626,911 50,276,131 17,567,785 34.9% 35,656,522 40,087,200 51,840,194 21,316,457 41.1% 324,260 52,164,454
CAPITAL IMPROVEMENT FUNDS
BUILDING SURCHARGE 50,000 51,016 1,016 2.0% 35,587 7,800 14,064 7,814 55.6% 0 14,064
ART IN PUBLIC PLACES 138,000 493,592 55,315 11.2% 140,110 565,773 837,130 40,460 4.8% 0 837,130
COMMUNITY DEVELOPMENT 0 59,679 0 0.0% 57,312 0 57,149 1,177 2.1% 0 57,149
GAS TAX 722,708 1,979,943 573,784 29.0% 919,950 877,160 1,696,679 235,497 13.9% 0 1,696,679
PARK FACILITIES 0 170,056 0 0.0% 16,727 86,500 145,030 31,645 21.8% 0 145,030
IMPROVEMENT & ACQUISITION 1,321,839 5,611,041 463,910 8.3% 1,428,409 3,762,000 13,189,700 658,219 5.0% 0 13,189,700
PARKING IMPROVEMENT 780,000 796,639 390,000 49.0% 780,000 798,000 814,639 390,000 47.9% 0 814,639
CAPITAL GRANTS 0 2,670,215 78,638 2.9% 550,755 1,929,800 4,464,355 479,770 10.7% 0 4,464,355
CDBG CAPITAL 58,292 84,397 171,654 203.4% 297,832 236,585 294,877 167,773 56.9% 0 294,877
TOTAL CAPITAL IMPROVE FUND 3,070,839 11,916,578 1,734,317 14.6% 4,226,682 8,263,618 21,513,623 2,012,355 9.4% 0 21,499,559
INTERNAL SERVICE FUNDS
EQUIPMENT REPLACEMENT 1,220,828 3,797,038 1,038,513 27.4% 3,638,497 3,144,492 4,452,903 784,941 17.6% 0 4,452,903
EQUIPMENT MAINTENANCE 6,208,557 6,389,953 2,964,806 46.4% 6,489,993 6,867,854 6,870,800 3,091,783 45.0% 0 6,870,800
SELF INSURANCE 7,403,121 7,442,927 3,551,628 47.7% 5,675,674 9,571,353 11,072,650 4,671,015 42.2% 0 11,072,650
CENTRAL STORES 1,422,250 1,437,844 671,587 46.7% 1,460,098 1,674,450 1,674,627 651,760 38.9% 0 1,674,627
INNOVATION 0 159,989 0 0.0% 0 0 0 0 0.0% 0 0
TOTAL INTERNAL SERVICE FUND 16,254,756 19,227,751 8,226,534 42.8% 17,264,262 21,258,149 24,070,980 9,199,499 38.2% 0 24,070,980
TOTAL BUDGET BEFORE ADJ. 139,313,638 166,109,644 66,424,567 40.0% 139,290,377 155,551,796 188,873,421 73,612,508 39.0% 382,410 189,241,767
LESS INTERNAL SERVICE FUND 16,254,756 19,227,751 8,226,534 42.8% 17,264,262 21,258,149 24,070,980 9,199,499 38.2% 0 24,070,980
TOTAL BUDGET 123,058,882 146,881,893 58,198,033 39.6% 122,026,115 134,293,647 164,802,441 64,413,009 39.1% 382,410 165,170,787
* Percent expended represents the percent of the adusted budget expended as of the end of the period covered in this report.
** Includes actual expenditures only. Does not include future liability adjustment (30921310)
*** Includes appropriations for capital improvement projects funded by Enterprise funds only.
2/18/2008 8:36 AM
Page 14 of 29
FINANCE DEPARTMENT
CITY OF CULVER CITY
9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507
(310) 253-6000
•
FAX (310) 253-6010
JEFF MUIR
Chief Financial Officer
____________________________
Culver City Employees take pride in effectively providing the highest levels of service to enrich the quality of life for the community by building on
our tradition of more than seventy-five years of public service, by our present commitment, and by our dedication to meet the challenges of the
future.
PRINTED ON RECYCLED PAPER
Date: February 25, 2008
To: Honorable Mayor and Members of the City Council
From: Finance Department
CC: City Manager
Re: RDA Mid-Year Budget Monitoring Report
Introduction:
This report includes a brief recap of fiscal year 2006-07 and the mid-year
analysis of revenues and expenditures for the Redevelopment Agency through
December 31, 2007. The purpose of this report is to provide the Council with a
snapshot of the financial position of the Redevelopment Agency (unrestricted and
bond proceed funds) as it relates to the budget, provide some information on the
progress on RDA programs and projects as measured by expenditures to date,
and propose mid-year adjustments to the budget as necessary.
Fiscal Year 2006-07 Recap:
Unrestricted Tax Increment Fund
The beginning balance for unrestricted funds in Fiscal Year 2006-07 was
approximately $23 million. The ending balance for FY 2006-07 is approximately
$12.5 million.
On-going revenues were strong and came in approximately $6 million over
budget. This was driven mainly by stronger than budgeted tax increment
receipts (approximately $4 million over budget), interest income (approximately
$425,000 over budget), parking revenues (approximately $350,000 over budget),
and Pacific Theater income (approximately $900,000 over budget).
One-time revenues were significantly over budget (approximately $12 million).
This is a result of a number of land sale revenues that were not originally
budgeted at the beginning of the year, including properties on Irving Place,
Culver Boulevard, and Lindblade (Lindblade was a pass-through for relocation
assistance; a corresponding expenditure was recorded on the expenditure side).
Expenditures also exceeded the adopted budget. Some expenditures, such as
the county administration fee, statutory pass through payments, and housing set-
aside are a set percentage of tax increment receipts per State redevelopment
law. Therefore, as tax increment receipts increase, there is a corresponding
increase in those expenditures, which equated to approximately $1.5 million over
budget.
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Additionally, the Agency purchased a large amount of land in 2006-07 amounting
to almost $23 million. The majority of this amount was related to parcels near the
Washington/National project area in anticipation of development related to the
impending Expo Light Rail regional transportation project. All together, the
Agency ran a deficit of approximately $11 million in 2006-07.
Tax-Exempt Bond Funds
The beginning balance for tax exempt funds in Fiscal Year 2006-07 was
approximately $12 million. The ending balance for FY 2006-07 (and beginning
balance for 2007-08) was approximately $23.5 million. The increased fund
balance is mainly the result of a re-allocation of funds.
As of July 1, 2006, there was approximately $12 million available in tax exempt
bond funds. In order to give the Agency flexibility with respects to the Baldwin
Motel Site project, the Agency approved transferring $1.7 million in unrestricted
tax increment funds to tax exempt bond funds. An additional $1.8 million was
earned in interest, which increased the available tax exempt bond funds to $15.5
million.
In May 2007, the Agency approved a $9 million loan from the City’s General
Fund to the Redevelopment Agency, which was used to substitute unrestricted
funds for tax exempt bond funds for the Washington/Centinela project area. This
further increased the available tax exempt bond funds to approximately $24.5
million. Of this amount, approximately $10 million was appropriated for projects.
Therefore, approximately $14.5 million in tax exempt bond funds were available
to be appropriated for qualified projects at the end of fiscal year 2006-07.
Low/Moderate Income Housing Fund
The beginning balance for Low/Moderate Income Housing Fund in Fiscal Year
2006-07 was approximately $12.9 million. The ending balance for FY 2006-07
(and beginning balance for 2007-08) was approximately $15.1 million. Towards
the end of FY 2006-07, Housing and Community Development staff began work
developing strategies to program the Low/Moderate Income Housing funds and
develop a long term work program, which will be presented to the
Redevelopment Agency at a later date.
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Mid-Year 2007-08 Analysis
Unrestricted Funds
Fund Balance:
The beginning unrestricted fund balance for 2007-08 is approximately $13
million. The projected ending fund balance, assuming that the proposed budget
revisions are adopted and the $9 million loan to the City is fully repaid, is
approximately $3.4 million.
Revenues:
Tax Increment
Tax Increment is the Redevelopment Agency’s primary source of on-going
revenue. The Agency receives tax increment based on the amount of property
tax that is generated in a Redevelopment project area above a certain base year
(i.e. the year the project area was established).
2006-07 2007-08 Revised
Revenue Description
Actual
Revenue
Mid-year
Receipts
Adopted
Revenue
Mid-year
Receipts
2007-08
Estimate
Project Area 1 7,824,285 3,000,752 7,101,000 3,816,610 8,144,000
Project Area 2 5,860,450 2,024,385 5,651,000 2,325,661 6,144,000
Project Area 3 12,387,106 4,872,195 11,667,000 5,237,616 12,479,000
Project Area 4 2,389,236 811,796 2,230,000 1,285,470 2,826,000
Total Tax Increment $28,461,077 $10,709,128 $26,649,000 $12,665,357 $29,593,000
Note: The tax increment revenues in the above table are gross receipts. Twenty percent (20%) of the gross amount must
be passed through to low/moderate income housing fund and up to an additional twenty percent (20%) is passed through
to other taxing agencies (e.g. CCUSD, LA County, City of Culver City).
Subsequent to the adoption of the 2007-08 Redevelopment Agency budget,
Keyser Marston Associates provided staff with an updated tax increment
projection based on the 2008-09 Assessed Value Report issued by the County
Assessor’s Office. The revised 2007-08 estimate of $29.6 million represents a
4% increase over the $28.5 million received in 2006-07. Based on the mid-year
receipts to date, staff recommends that the budgeted tax increment revenues are
revised to reflect the increased values.
On-going Revenues
In addition to tax increment, the Redevelopment Agency receives some on-going
revenue from a number of sources, including rental income, parking fees,
participation agreements, repayment for loan’s issued, etc.
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Parking Revenues:
2006-07 2007-08 Revised
Revenue Description
Actual
Revenue
Mid-year
Receipts
Adopted
Revenue
Mid-year
Receipts
2007-08
Estimate
Ince Parking Structure 410,424 216,499 380,000 260,337 420,000
Cardiff Parking Structure 103,539 52,480 105,000 47,852 no change
Watseka Parking Structure 211,129 102,905 205,000 111,356 no change
Film Parking Revenue 172,317 97,294 75,000 50,768 no change
Other Parking Revenues 287,824 139,558 138,120 105,893 no change
Total Parking Revenues $1,185,233 $608,736 $903,120 $576,206 $943,120
Rent/Participation Agreements:
2006-07 2007-08 Revised
Revenue Description
Actual
Revenue
Mid-year
Receipts
Adopted
Revenue
Mid-year
Receipts
2007-08
Estimate
Farmers’ Market 114,409 55,640 105,000 62,177 no change
Pacific Theatre Revenues 1,686,956 627,282 1,200,000 377,381 no change
Rent, Lease, & Loan Pymnts 165,178 126,660 156,000 75,600 no change
Based on the mid-year receipts, staff recommends that the revenue estimate for
the Ince Parking Structure is increased. A significant amount of the use of the
Ince Parking structure comes from business related to filming and operations at
Culver Studios. Despite the Writers’ Guild strike, film parking at Ince has
remained relatively strong as many of the game shows and reality type shows
filmed at Culver Studios have not been significantly impacted by the strike.
Other Parking Revenues includes smaller parking lots, such as those on
Virginia, Canfield, Robertson, and Parcel B. Parking revenues from Parcel B
were collected through December. However, Parcel B will no longer be used as
a parking lot and will not generate parking revenues for the remainder of the
fiscal year. Therefore no budget amendment is recommended.
Additionally, mid-year receipts for the Pacific Theatre are lagging behind last
year’s receipts. The lagging revenues have been seen industry-wide and are a
combination of a number of factors, including a weakening economy, lack of
quality blockbuster movies, and the Writers’ Guild strike. Staff believes that the
adopted revenue of $1.2 million is still achievable as the spring movie season is
historically stronger than the fall/winter. RDA staff will be presenting a more
detailed report to the Agency in March on Pacific Theatre’s performance through
the first two quarters of the year.
Land Sale Proceeds
Over the last few years, the Redevelopment Agency has acquired a number of
blighted properties throughout the Redevelopment project areas. The RDA is
now moving forward with selling many of these properties for various
redevelopment projects, including Parcel B, Baldwin Hotel property, and
Washington/Centinela. Staff expects to receive revenue from one property in
fiscal year 2007-08.
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Expenditures:
To identify the nature of the Agency’s expenditures, they have been divided into
five categories:
1. Debt Service and Statutory Indebtedness
2. Administrative Costs
3. Ongoing Projects/Programs
4. Under Development Projects/Programs
5. Potential Projects/Programs
Debt Service and Statutory Indebtedness
Debt Service Payments include all principal and interest payments on all
outstanding bond issues, which are based on interest rates at the time of bond
issuance. Debt Service payments are fixed when the bond is issued; therefore
the payment amounts are known and paid according to a debt schedule. The
Redevelopment Agency’s Debt Service obligation for 2007-08 is $13,972,793.
Statutory indebtedness are payments that the Redevelopment Agency is
statutorily obligated to pay, such as the 20% housing set-aside requirement,
statutory pass through agreements with other taxing agencies, administration fee
to the County, and Education Revenue Augmentation Fund (ERAF) payments.
Housing set-aside and statutory pass through payments are calculated as a set
percentage of the total tax increment that the Agency receives. Consequently,
those payment amounts are dependant on how much tax increment is received
in any given year. Based on the revised tax increment projections above, the
revised pass through payments for 2007-08 are:
Revenue Description
Actual
2006-07
Expense
Adjusted
2007-08
Budget
Revised
2007-08
Estimate
20% Housing Set Aside 5,692,215 5,329,800 5,918,600
Total Housing Set Aside $5,692,215 $5,329,800 $5,918,600
Pass Through Pymnts
LA County – General 1,452,081 1,350,104 1,694,514
LA County Fire Dept 9,987 9,265 11,628
LACCD 40,497 37,568 47,152
LA West Vector Control 501 465 583
LA County Flood Contrl 18,153 16,840 21,136
LA County School Serv 5,606 5,201 6,527
CCUSD 1,217,774 1,383,111 1,735,940
City of Culver City 164,414 152,523 191,431
LA County Library 38,725 35,924 45,088
Total Pass Through $2,947,737 $2,991,000 $3,754,000
Note: Due to the timing of tax increment receipts from the County, pass through payments made in the current year are
for prior year’s obligation. For example, payments made in 2006-07 are for 2005-06 pass through obligation.
Page 19 of 29Page 6 PRINTED ON RECYCLED PAPER
The state has not required Redevelopment Agencies to make ERAF payments
since fiscal 2005-06. However, due to the state’s recent cash flow problems and
projected $14 billion budget deficit for 2008-09, the Governor has declared a
fiscal emergency. The declaration of a fiscal emergency opens the door for
the state to again shift funds away from Redevelopment Agencies. At this
juncture, the Governor has not proposed diverting Redevelopment Agency funds.
However, as the budget process progresses, the legislature may re-institute
ERAF payments or some other form of revenue diversion. Staff will continue to
monitor the state’s budget and its impact on the City and RDA.
Administrative Costs
The Administrative costs category includes the salaries and benefits for the
Redevelopment and Economic Development divisions, general supplies and
operations expenses, contract services, and reimbursement costs that the
Agency pays to the City for a number of positions that are impacted by
redevelopment activities (e.g. planning staff, code enforcement staff, building and
safety staff, etc.). With the exception of Supplies and Contract Services, these
costs are typically charged monthly with a “true-up” adjustment at the end of the
fiscal year. No adjustments to any of these expenditure categories are
recommended at this time.
Program Description
Actual
2006-07
Expense
Adjusted
2007-08
Budget
Mid-year
Expense
2007-08
Admin – RDA Salaries 1,509,821 1,785,781 845,900
Admin – Supplies 414,373 339,183 110,049
Admin – Contract Svcs 869,945 1,224,368 223,589
Rehab Patrol Services 325,000 325,000 135,415
City Cost Allocation 2,274,546 2,525,001 1,228,680
Total Administration Costs $5,393,685 $6,199,333 $2,543,633
Note: Admin – Salaries and City Cost Allocation are reimbursements to the City. The actual reimbursement is typically
billed as a lump sum at year-end. Therefore, there is very little monthly activity in these areas
Ongoing Projects/Programs
This expenditure category consists of the ongoing projects and programs
managed by the Agency. This includes the costs for management activities for
Agency owned and/or operated properties (e.g. downtown parking structures,
and the Pacific Theaters) and many cultural affairs type programs, including
Music in the Chambers, “The Art of…” speaker series, and the Culver City Music
Festival.
Page 20 of 29Page 7 PRINTED ON RECYCLED PAPER
Program Description
Actual
2006-07
Expense
Mid-year
Expense
2006-07
Adjusted
2007-08
Budget
Mid-year
Expense
2007-08
Parking Management
Cardiff Parking Structure 350,546 64,650 373,435 64,383
Ince Parking Structure 353,563 140,161 561,532 108,989
Virginia Parking Lot 27,297 13,098 46,828 13,500
Watseka Parking Structure 116,449 41,410 309,849 19,795
Total Parking Management $847,855 $259,319 $1,291,644 $206,667
Economic Development Programs 294,445 227,755 574,368 48,057
Farmers Market 45,155 15,838 85,657 14,714
Property Management - General 428,256 259,328 438,612 131,978
Ivy Substation 9,355 3,764 49,747 1,481
Total Economic Development $777,211 $506,685 $1,148,384 $196,230
Children’s Events 4,115 0 5,000 152
Historic Preservation 00 10,000 0
Public Outreach 11,046 3,035 39,973 100
Music in the Chambers 10,317 16 20,000 500
Speaker Series – The Art of … 25,232 12,967 47,687 0
Special Events 3,809 0 10,000 6,284
Culver City Music Festival 46,786 33,877 103,899 63,224
Total Cultural Affairs $101,305 $49,895 $236,559 $70,260
Due to the vacancy of the Economic Development Administrator, Economic
Development Program expenditures are behind last year’s expenditures,
primarily due to a decrease in Business Development expenses. The Business
Development Program offers various incentives to encourage local business
development. The RDA is currently recruiting for the vacant position.
Property Management – General costs are also down from last year due to a
large interest payment of approximately $130,000 for the purchase of the 9900
Culver Blvd property from the City. After adjusting that one-time payment out,
expenditures are comparable to last year. No budget revisions are
recommended at this time.
Projects/Programs Under Development
Projects/programs under development have been presented to and considered
by the Agency Board and are in varying stages of implementation (i.e. planning,
demolition, construction, or project closeout stage). Once these
projects/programs are completed, there will be no associated direct ongoing cost
assumed by the Agency. Expenditures in this category are subject to change as
projects progress due to a variety of project specific factors.
Page 21 of 29Page 8 PRINTED ON RECYCLED PAPER
Program Description
Actual
2006-07
Expense
Mid-year
Expense
2006-07
Adjusted
2007-08
Budget
Mid-year
Expense
2007-08
Proposed
Revision
Baldwin Motel Block
(12803-23 Wash. Blvd) 9,018 1,569 45,600 549 no change
Parcel B 3,248 2,289 10,521 750 no change
Sepulveda Blvd MTA 00 130,000 0 no change
Washington/Centinela Sites 825,390 349,791 469,876 35,379 no change
Washington/National Sites 1,187,693 280,320 645,711 270,672 895,711
Total Projects under
Development $2,025,349 $633,969 $1,301,708 $307,350 $1,551,708
Due to the uncertainty related to relocation costs for the Washington/National
project, sufficient funding for relocation services was not originally included in
the adopted 2007-08 budget. Therefore, a budget amendment is needed to
increase relocation services in the Washington/National project
(55092620.610500) by $250,000. With the exception of Washington/National
and Sepulveda Blvd MTA, most of the above projects are substantially under way
and the Redevelopment Agency’s involvement is expected to dwindle within
the next 12 – 18 months. No other budget revisions to any of these projects are
recommended at this time.
Potential Projects/Programs
Potential projects/programs are in the exploratory stages of development, i.e.
staff is researching potential projects that community investors and community
members may be interested in implementing. For the most part, costs in this
category are to identify projects in certain areas that may ultimately be brought
before the Agency Board for consideration. Once a potential program is
approved by the Agency Board, it becomes a current project/program. This is
the most dynamic and changing expenditure category.
Program Description
Actual
2006-07
Expense
Mid-year
Expense
2006-07
Adjusted
2007-08
Budget
Mid-year
Expense
2007-08
Culver and Sawtelle 00 5,000 0
Mid Washington Opportunity Sites 21,178 0 132,000 7,321
Sepulveda Blvd Redevelopment 23,669 1,000 110,528 0
Total Potential Projects/Programs $44,847 $1,000 $247,528 $7,321
Due to a number of vacant positions and limited staff resources,
Redevelopment staff has been focused on moving the Projects under
Development along before expending too much energy on potential projects.
Therefore, no budget amendments are being recommended at this time.
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Tax Exempt Bond Fund
Fund Balance:
The beginning restricted tax exempt bond fund balance for 2007-08 is
approximately $23.5 million. Approximately $770,000 is anticipated in interest
income and $9 million is currently appropriated for capital projects (see table
below). Therefore, approximately $15 million is currently available to be
appropriated for projects that meet the restrictions of tax exempt bond funding.
Current Bond Funded Projects:
The Redevelopment Agency currently has tax exempt bond proceeds available
from the 2002 bond issue. The use of tax exempt bond proceeds are restricted
by the IRS taxation code, which generally limits the use to qualified governmental
purposes, such as constructing governmental facilities, improving roads and
infrastructure, or providing for public safety.
There are currently approximately $15 million in unallocated bond funds that are
available to be used for qualified projects. Projects for which bond funds are
currently allocated are below:
Program Description
Actual
2006-07
Expense
Adjusted
2007-08
Budget
Mid-year
Expense
2007-08
Downtown Street Improvements
Washington Blvd Realignment 331,637 2,500,000 559,244
Town Plaza Expansion 0 3,324,000 0
Washington/National 0 350,000 0
Public Works Street Improvements 677,336 323,736 0
Hayden Tract – MTA Spur 0 50,000 0
Fire Station #3 257,503 2,642,000 681,688
Total Bond Fund $1,266,472 $9,136,000 $1,240,932
Work is underway on the Washington Blvd realignment, Fire Station #3, and
Public Works Street Improvements (Adams Boulevard resurfacing, scheduled to
begin this spring). Demolition on the Washington/National site will begin once all
of the occupants in that area have been relocated and work on the Town Plaza
expansion is slated to begin in May 2008.
City Loan to Agency
Over the past few years, the Redevelopment Agency acquired a number of
properties throughout the City in furtherance of the Redevelopment Plan. While
a number of the properties were purchased with unrestricted tax increment funds,
several properties were purchased with tax exempt bond funds due to the
anticipated project/proforma structure. For the properties that utilized bond funds
to purchase the properties, there was the expectation that the residual land value
Page 23 of 29Page 10 PRINTED ON RECYCLED PAPER
from the subsequent sale of the property would not result in a return greater than
five percent of the total bond issue (i.e. $1.5 million). Due to changes in the
value and scope of two of these projects (i.e. Baldwin Hotel fka West Culver Lofts
and Washington/Centinela), the return was projected to exceed five percent.
This would violate one of the restrictions placed on tax-exempt bond funds.
In order to avoid this situation and give the Agency flexibility in the future use and
disposition of those affected projects, it was necessary to replace the bond funds
originally used to purchase the properties with unrestricted funds. To achieve
this, unrestricted funds needed to be transferred to the tax exempt bond fund
account, which effectively decreases the amount of unrestricted funds that are
available and increases the amount of restricted tax exempt bond funds that are
available.
As of July 1, 2006, there was approximately $12 million available in tax exempt
bond funds. In order to give the Agency flexibility with respects to the West
Baldwin Motel Site project, the Agency approved transferring $1.7 million in
unrestricted tax increment funds to tax exempt bond funds. An additional $1.8
million was earned in interest, which increased the available tax exempt bond
funds to $15.5 million.
In May 2007, the Agency approved a $9 million loan from the City’s General
Fund to the Redevelopment Agency, which was used to substitute unrestricted
funds for tax exempt bond funds for the Washington/Centinela project area. This
further increased the available tax exempt bond funds to approximately $24.5
million. Of this amount, approximately $9 million is currently appropriated for
other projects (see Adjusted 2007-08 Budget column above). Therefore,
approximately $15 million in tax exempt bond funds are available to be
appropriated for qualified projects.
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Economic Update:
The Redevelopment Agency relies primarily on Tax Increment as its funding
source. As a result, RDA revenues are very dependant on the health of the real
estate market (especially the commercial real estate market).
• Real Estate/Housing Market: The housing market, both in California and
nationwide, continues to slump. A November report from the California
Association of Realtors revealed that unit sales in California fell by 36% from
last November, while the median price declined by 11.9% to $488,640. The
unsold inventory was 15.3 months compared with 6.4 months a year ago.
o Los Angeles County: Unit sales fell by 36.5% from last year, while
median price fell by 11.8% to $520,960.
• State Budget: As previously mentioned in this report, the state is currently
experiencing cash flow problems and has a projected $14+ billion budget
shortfall for 2008-09. At this point, the Governor’s proposed budget does not
include any shifting of City or Redevelopment Agency funds. However, it is
still a distinct possibility. Staff will continue to monitor the state budget.
ATTACHMENTS:
1. RDA Unrestricted Fund Cash Flow Summary
2. RDA Unrestricted Fund Cash Flow Detail
3. Tax Exempt Bond Fund Cash Flow Summary
4. Tax Exempt Bond Fund Cash Flow Detail
Page 25 of 29REDEVELOPMENT AGENCY Actual Adopted Revised Projected Projected Projected Projected
UNRESTRICTED FUNDS 2006-07 2007-08 2007-08 2008-09 2009-10 2010-11 2011-12
Beginning Unrestricted Fund Balance 22,900,000 $ 12,583,000 $ 12,583,000 $ 3,453,000 $ 14,192,000 $ 18,145,000 $ 24,074,000 $
Revenues - Tax Increment 28,461,076 26,649,000 29,593,000 31,565,000 36,119,000 40,523,000 43,099,000
Revenues - Other Ongoing 5,173,282 3,643,464 3,720,344 3,731,110 3,574,640 3,673,020 3,816,580
Revenues - One-time 12,114,107 11,375,000 5,975,000 11,775,000 200,000 200,000 0
Total Revenue Projection 45,748,465 41,667,464 39,288,344 47,071,110 39,893,640 44,396,020 46,915,580
Tax Increment Indebtedness 24,421,826 32,026,594 33,378,393 24,709,444 26,719,399 28,897,053 30,017,278
Administrative Costs 5,068,685 5,874,333 5,874,333 6,292,288 6,561,000 6,840,000 7,131,000
Ongoing Projects/Programs 2,051,371 2,659,520 2,659,520 2,658,666 2,660,473 2,730,367 2,801,438
Current Projects 25,012,005 6,536,500 6,441,500 1,299,700 0 0 0
Potential Projects 36,389 65,000 65,000 1,372,500 0 0 0
Total Expenditure Projection 56,590,276 47,161,947 48,418,746 36,332,598 35,940,872 38,467,420 39,949,716
Annual Operationing Surplus/Deficit (10,841,811) (5,494,483) (9,130,402) 10,738,512 3,952,768 5,928,600 6,965,864
Year-end CAFR Reconciliation Adjustment 525,000
Ending Unrestricted Fund Balance 12,583,000 $ 7,089,000 $ 3,453,000 $ 14,192,000 $ 18,145,000 $ 24,074,000 $ 31,040,000 $
REDEVELOPMENT AGENCY
UNRESTRICTED FUNDS: 5 YEAR CASH FLOW SUMMARY|10 10|10,000
20,000
30,000
40,000
50,000
60,000
2006-07 2007-08 2007-08 2008-09 2009-10 2010-11 2011-12
Actual Adopted Revised Projected Projected Projected Projected
Redevelopment Agency
Revenues vs. Expenditures
Total Revenue Projection Total Expenditure Projection
Page 26 of 29Actual Adopted Proposed Revised Revised Projected Projected Projected
ANNUAL CASH FLOW 2006-07 2007-08 Revisions 2007-08 2008-09 2009-10 2010-11 2011-12
Beginning Unrestricted
Fund Balance 22,900,000 12,583,000 12,583,000 3,453,000 14,192,000 18,145,000 24,074,000
RDA REVENUES
Tax Increment Revenue 28,461,076 26,649,000 2,944,000 29,593,000 31,565,000 36,119,000 40,523,000 43,099,000
Other Ongoing Revenue 5,173,282 3,643,464 76,880 3,720,344 3,731,110 3,574,640 3,673,020 3,816,580
One-time Revenue (Property Sale) 12,114,107 11,375,000 (5,400,000) 5,975,000 11,775,000 200,000 200,000 -
TOTAL RDA REVENUES 45,748,465 41,667,464 (2,379,120) 39,288,344 47,071,110 39,893,640 44,396,020 46,915,580
RDA GENERAL EXPENDITURES 2006-07 2007-08 Revisions Revised 2008-09 2009-10 2010-11 2011-12
Tax Increment Indebtedness
Debt Service 13,984,459 13,972,793 - 13,972,793 13,970,444 13,972,599 13,976,453 13,969,478
Housing Set Aside 5,692,215 5,329,800 588,800 5,918,600 6,313,000 7,223,800 8,104,600 8,619,800
Statutory Pass Through 389,916 257,786 65,774 323,560 2,097,000 3,084,000 4,269,000 4,803,000
County Admin Fees 1,452,081 1,350,104 344,396 1,694,500 555,000 634,000 710,000 755,000
CCUSD (CA #2) 1,217,774 1,383,111 352,829 1,735,940 1,554,000 1,585,000 1,617,000 1,650,000
Interfund Transfer 1,685,381 - - - - - - -
Loan Repayment to City - 9,513,000 - 9,513,000 - - - -
ERAF - - - - - - - -
ERAF Loan Payment to Housing - 220,000 - 220,000 220,000 220,000 220,000 220,000
SubTotal TI Indebtedness 24,421,826 32,026,594 1,351,799 33,378,393 24,709,444 26,719,399 28,897,053 30,017,278
Administrative Expenses
Administration-Salaries* 1,509,821 1,785,781 - 1,785,781 2,078,346 2,172,000 2,270,000 2,372,000
Administration. - Supplies/Operations 414,373 339,183 - 339,183 336,763 349,000 361,000 374,000
Administration - Contract Services 869,945 1,224,368 - 1,224,368 1,224,837 1,268,000 1,312,000 1,358,000
City Cost Allocation 2,274,546 2,525,001 - 2,525,001 2,652,342 2,772,000 2,897,000 3,027,000
SubTotal Admin Expenses 5,068,685 5,874,333 - 5,874,333 6,292,288 6,561,000 6,840,000 7,131,000
Subtotal -- General Expenditures 29,490,511 37,900,927 1,351,799 39,252,726 31,001,732 33,280,399 35,737,053 37,148,278
ONGOING PROGRAM/PROJECT EXPEN 2006-07 2007-08 Revisions Revised 2008-09 2009-10 2010-11 2011-12
Cardiff Parking Structure 350,546 257,000 - 257,000 264,000 272,000 280,000 288,000
Children's Events 4,115 5,000 - 5,000 5,000 5,150 5,305 5,464
Culver City Music Festival 46,786 70,000 - 70,000 70,000 72,000 74,000 76,000
Economic Development 294,445 557,000 - 557,000 516,000 531,000 547,000 563,000
Farmers Market 45,155 74,450 - 74,450 79,750 82,143 84,607 87,145
Historic Preservation - 10,000 - 10,000 10,000 10,300 10,609 10,927
Ince Parking Structure 353,563 482,500 - 482,500 507,000 522,000 538,000 554,000
Ivy Substation 9,355 48,500 - 48,500 26,400 27,000 28,000 29,000
Public Outreach 11,046 29,000 - 20,000 30,000 30,900 31,827 32,782
Music in the Chambers 10,317 20,000 - 66,000 20,000 20,600 21,218 21,855
Pacific Theaters - 66,000 - 411,070 66,000 - - -
Property Management - General 428,256 411,070 - 29,000 416,516 429,000 442,000 455,000
Rehab Patrol Services 325,000 325,000 - 325,000 325,000 325,000 325,000 325,000
Speaker Series - The Art Of... 25,232 34,500 - 34,500 36,000 37,080 38,192 39,338
Special Events 3,809 10,000 - 10,000 10,000 10,300 10,609 10,927
Virginia Parking Lot 27,297 35,500 - 35,500 39,500 41,000 42,000 43,000
Watseka Parking Lot 116,449 224,000 - 224,000 237,500 245,000 252,000 260,000
Subtotal -- Ongoing Programs/Projects
2,051,371 2,659,520 - 2,659,520 2,658,666 2,660,473 2,730,367 2,801,438
CURRENT PROJECT EXPENDITURES 2006-07 2007-08 Revisions Revised 2008-09 2009-10 2010-11 2011-12
Acquisition Administration Costs 41,924 53,500 - 53,500 32,500 - - -
Downtown Parcel B 3,248 4,000 - 4,000 - - - -
Encore Motel Area 508 - - - - - - -
Kirk Douglas Theatre - 10,000 - 10,000 - - - -
Sepulveda MTA Grant - 130,000 - 130,000 - - - -
Sepulveda Projects 23,669 75,000 - 75,000 75,000 - - -
Town Plaza Maintenance 18,197 - - - - - - -
Washington/Centinela Sites 825,390 345,000 - - - - - -
Washington/National Sites 1,187,693 525,000 250,000 775,000 50,000 - - -
West Culver Lofts 9,018 44,000 - 44,000 49,200 - - -
Property Acquisition 22,902,358 5,350,000 - 5,350,000 1,093,000 - - -
Subtotal -- Current Projects
25,012,005 6,536,500 250,000 6,441,500 1,299,700 - - -
EXPENDITURES 2006-07 2007-08 Revisions Revised 2008-09 2009-10 2010-11 2011-12
Miscellaneous Contingency Funds - - - - 1,350,000 - - -
Culver Sawtelle - 5,000 - 5,000 2,500 - - -
Hayden Revitalization - MTA Spur 14,990 - - - - - - -
Lindblade Opportunity Sites 221 - - - - - - -
Mid Washington/Pleasant View 21,178 60,000 - 60,000 20,000 - - -
Subtotal -- Potential Projects 36,389 65,000 65,000 1,372,500 - - -
TOTAL EXPENDITURES
56,590,276 47,161,947 1,601,799 48,418,746 36,332,598 35,940,872 38,467,420 39,949,716
Projected Annual Surplus/Deficit (10,841,811) (5,494,483) (9,130,402) 10,738,512 3,952,768 5,928,600 6,965,864
Year-end CAFR Reconciliation Adjustment
525,000
Ending Unrestricted
Fund Balance
12,583,000 7,089,000 3,453,000 14,192,000 18,145,000 24,074,000 31,040,000
REDEVELOPMENT AGENCY
UNRESTRICTED FUNDS: 5 YEAR CASH FLOW DETAIL
Page 27 of 29REDEVELOPMENT AGENCY
TAX EXEMPT BOND FUNDS
Actual
2006-07
Adopted
2007-08
Approved
2008-09
Projected
2009-10
Projected
2010-11
Projected
2011-12
Beginning Fund Balance
12,030,775 $ 23,461,000 $ 15,090,000 $ 15,638,000 $ 16,268,000 $ 16,925,000 $
Interest 1,826,204 769,000 608,000 630,000 657,000 685,000
Loan from City 9,075,698 00000
Transfers In 1,685,381 00000
Total Revenues 12,587,283 769,000 608,000 630,000 657,000 685,000
Component Area 1 258,000 2,642,000 0000
Component Area 2 000000
Component Area 3 494,000 6,174,000 0000
Component Area 4 780,000 323,736 60,000 0 0 0
Total Expenditures
1,532,000 9,139,736 60,000 0 0 0
Year-end CAFR Reconciliation Adjustment
375,000
Ending Fund Balance
23,461,000 $ 15,090,000 $ 15,638,000 $ 16,268,000 $ 16,925,000 $ 17,610,000 $
REDEVELOPMENT AGENCY
TAX EXEMPT BOND FUNDS: 5 YEAR CASH FLOW SUMMARY
Actual
2006-07
Adopted
2007-08
Approved
2008-09
Projected
2009-10
Projected
2010-11
Projected
2011-12|10 10|5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Redevelopment Agency
Tax Exempt Bonds -- Available Fund Balance
Page 28 of 29ACTUAL ADOPTED APPROVED ESTIMATED ESTIMATED ESTIMATED
ANNUAL CASH FLOW 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
AVAILABLE FUND BALANCE - 7/1 12,030,775 23,461,000 15,090,000 15,638,000 16,268,000 16,925,000
TRANSFER IN 1,685,381
LOAN FROM CITY 9,075,698
INTEREST 1,826,204 769,000 608,000 630,000 657,000 685,000
TOTAL AVAILABLE RESOURCES 24,618,058 24,230,000 15,698,000 16,268,000 16,925,000 17,610,000
TOTAL BOND EXPENDITURES
COMPONENT AREA 1 000
93700 Fire Station 3 257,503 2,642,000 0000
SubTotal Component Area 1 257,503 2,642,000 0000
COMPONENT AREA 2
No Projects
SubTotal Component Area 2 000000
COMPONENT AREA 3 00000
93400 Downtown Street Improvements 331,637 5,824,000 0000
93600 Plunge Remodel 92,681 00000
94801 Wash. Streetscape Projects 69,798 00000
92700 Town Plaza Infrastructure 000000
92620 Washington/National Sites 85 350,000 0000
SubTotal Component Area 3 494,201 6,174,000 0000
COMPONENT AREA 4
93500 Public Works Street Improvements 0 270,000 60,000 0 0 0
93501 Culver Blvd Keystone to Jasmine 120,667 00000
93502 Washington Blvd/Reid Ave 41,264 53,736 0000
93503 Washington Blvd/Elenda Ave 515,405 00000
94200 Kirk Douglas Theater 000000
94500 Historic Rehab 000000
94600 East Washington Rehab Grant 39,975 00000
96900 Senior Center 000000
92630 Culver West Lofts 2,960 00000
93200 West Washington Rehab 60,000 00000
96000 Property Acquisition 000000
92900 Sepulveda Rehab Grant 000000
92610 Washington/Centinela Cites 000000
SubTotal Component Area 4 780,271 323,736 60,000 000
TOTAL PROGRAM EXPENSES 1,531,975 9,139,736 60,000 0 0 0
Year-end CAFR Reconciliation Adjustment 375,000
AVAILABLE FUND BALANCE - 6/30 23,461,000 15,090,000 15,638,000 16,268,000 16,925,000 17,610,000
REDEVELOPMENT AGENCY
TAX EXEMPT BOND FUNDS: 5 YEAR CASH FLOW DETAIL
Page 29 of 29