Legislation Details

File #: HIST-7566    Version: 1 Subject:
Type: Historical Status: Joint Consent
In control: City Council Meeting Agenda
On agenda: 2/25/2008 Final action: 2/25/2008
Title: A Joint Item before the City Council and the Redevelopment Agency: Year-End Budget Report for Fiscal Year 2006/2007.
Attachments: 1. A Joint Item before the City Council and the Redev - J-1_08_02_25 Year-end 2006-07 - FINAL.doc, 2. A Joint Item before the City Council and the Redev - J-1__08_02_25 Attachment - FINAL_Year_End_Budget_Review_Report 06-07.pdf
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 2006-07 Year-end Financial Budget Report ATTACHMENTS Pages 1. City Fiscal 2006-07 Year-end Budget Report 1 - 6 2. City Fiscal 2006-07 Year-end Revenue Summary 7 - 8 3. City Fiscal 2006-07 Year-end Expenditure Summary 9 - 10 4. Agency Unrestricted Funds Cash Flow: 2006-07 Budget vs. Actual 11 - 12 5. Agency Tax Exempt Bond Funds Cash Flow: 2006-07 Budget vs. Actual 13 CITY OF CULVER CITY 2006-2007 Budget Report Final Year End Report Introduction: This report includes the revenue and expenditure analysis for Fiscal Year 2006-07. Overall, the City’s fiscal outlook for the year ending June 30, 2007, especially for the General Fund, ended on a positive note, mainly due to one-time funds that were received during the fiscal year and higher than projected recurring revenues in some categories. General Fund Summary: According to final figures, total General Fund expenditures for 2006-07 are approximately $76.94 million, while General Fund revenues are $80.14 million. The end result is estimated to be approximately a $3.2 million surplus in fiscal 2006-07. The 2006-07 year-end budget reflects an unreserved General Fund fund balance of $31.9 million, or 41.4% of total General Fund operating expenditures from 2006-07. Thus, our estimated fund balance for the end of fiscal 2007-08 will be approximately $29.3 million, or 35.5% of total General Fund expenditures for 2007-08. This calculation assumes the second payment of $2.6 million from the Warner Lot sale will be received, and the $9 million from the Redevelopment Agency will be repaid in fiscal 2007-08. One-time Revenues: During fiscal 2006-07, there were two occasions where identifiable one-time revenues were received. These were in the Transient Occupancy Tax category and are receipts in the amount of approximately $550,000 from a bankruptcy ruling, and approximately $100,000 from a TOT audit performed during fiscal 2006-07. Revenues: General Fund revenue receipts through June 2007 are $80,138,174, and exceed the adjusted budget amount by approximately $5.1 million. The adjusted budget revenue projection for fiscal 2006-07 was $75.05 million. (Detailed information on each of the revenue categories will be given in the General Fund Analysis section.) Following is a brief explanation of some of the factors: o There were four land sale transactions in June 2007 that pushed the receipts for the Real Property Transfer Tax over projections. These four land sale transactions totaled approximately $583,000. On average Real Property Transfer Tax receipts average $110,000 to $230,000 per month. o Electricity UUT receipts came in $720,000 over projections. Projections were calculated using a 3% increase over 2005-06 actuals, which may have been too conservative. Rate increases also took effect during 2006-07, which equated to higher overall receipts. o Transient Occupancy Tax receipts came in over $1 million higher than projections. Receipts from a bankruptcy finding of approximately $550,000 make up half of this amount. Another $100,000 comes from an audit which is performed approximately every three years. One hotel located in Culver City began paying TOT regularly in 2006-07, which accounted for approximately $400,000. Also, this hotel had not been paying TOT during fiscal 2005-06, which excluded this amount from being included in the normal calculation for projecting 2006-07 revenues; thus it reduced the base amount for the projection. Page 1 of 13 2 o Receipts for SB90 State Mandate Claims were received in the amount of $55,000, which were not anticipated. o A firm submitted Plan Check fees in fiscal 2006-07 in the amount of $385,000 that were not anticipated. This falls in the Charges for Services category. o Interest in the General Fund came in approximately $500,000 higher than projected. A large portion of this is due to the investing of bonds valued at $16 million that matured and were reinvested at approximately 5%. They were originally invested at approximately 3%. Expenditures: Overall, General Fund expenditures are $76,935,532, or 95.3% of appropriations, which is well under the 96.5% spending target. This is primarily due to salary savings from vacant positions in a few departments. For the most part, departments successfully adhered to the 96.5% spending assumption. The City Manager’s Office (101.6%), City Clerk (97.7%), Administration/Budget & Finance (96.7%), and Personnel (97.1%) departments exceeded 96.5%. In fiscal 2007- 08, the adopted City budget includes a 3% CPI increase to operating expenditures, which had not been included for the past three years. For additional detail, see the attached chart entitled, “General Fund Expenditures by Month” and table (Exhibit B) “Summary of Expenditures, Preliminary Year End 2005-06 and 2006-07.” General Fund Analysis: Revenues Property Tax came in above projections by approximately $157,000. This was due mainly to a higher than anticipated pass-through payment to the City. Original projections were $60,000, and actual receipt was $164,414. Real Property Transfer Tax came in above projections due mainly from some large land sale transactions, in which the receipts were received in June. These four transactions amounted to approximately $583,000. Receipts normally average $110,000 to $230,000 per month. Total receipts received were $2,965,289, or 112% of projections. This is approximately $316,000 over adjusted budget projections. Sales Tax came in steady during fiscal 2006-07 with approximately a $550,000 increase over budgeted projections. Business License Tax came in above projections due to additional penalty charges. This category, including penalties, came in approximately $380,000 above projections. Utility User’s Tax came in approximately $512,000 above budgeted projections. This was entirely due to Electricity UUT receipts. Electricity UUT receipts came in approximately $720,000 above projections. This can be partly attributed to a “too conservative” percentage projection growth over fiscal 2005-06, and rate increases implemented in fiscal 2006-07, which enhanced Electricity UUT receipts. Both Water and Cable UUT came in approximately 7% above budgeted projections, and Gas came in approximately 3.2% below projections. This can be partly attributable to a warmer than usual winter. Telecommunications UUT came in approximately 5.0% below projections, and was covered by Electricity UUT receipts. Total receipts for UUT were $13,891,149, or 103.8% of projections. Page 2 of 13 3 Licenses and Permits came in over projections by approximately $190,000, or 112.8%. Permits submitted by two firms doing development contributed to this higher than anticipated increase. Commercial/Industrial Development Fees came in above projections by almost 50%. Total estimated receipts for fiscal 2006-07 are $558,648. The Charges for Services total estimated revenue receipts for fiscal 2006-07 are $9,442,156, or 110.7% over projections. Plan Check fees were approximately $444,000 over projections, of which $385,000 was from one development. The Plunge brought in higher than anticipated revenues for the year in all categories except Contract Classes. Overall revenues for the Plunge were approximately $262,842, which was $87,342 higher than anticipated. Court Fines and Vehicle Code Fines are approximately 4% above projections for fiscal 2006-07. This is mainly attributable to Vehicle Code Fines for photo enforcement (red- light) being above projections. For additional detail, see the attached chart entitled “General Fund Revenues by Month,” and table (Exhibit A) “Summary of Revenues, Preliminary Year-End 2004-05 and 2005- 06.” Self Insurance Fund Summary Self Insurance Fund expenditures in 2006-07 were approximately 110% of the adjusted budget|1010|. o The budget deficit is a result of the settlement reached with the property owners affected by the Culver Crest hill slide in 2006. SIF Cash Balance – The Self Insurance Fund cash balance as of June 30, 2007 is $5 million. However, net costs related to the repair of the Culver Crest hill side will have a significant impact on the cash balance. During fiscal 2007-08, the fund’s cash balance is projected to decrease to approximately $1.5 million due primarily to the cost to repair the hillside (approximately $3.6 million). o The cash balance will need to be replenished by increasing liability reserve charges to user departments over the next few years. Risk Management staff will develop a plan to replenish the fund through the upcoming budget process. Future Liability Adjustments as of June 30 th are as follows: o Overall, the future liability for the Self Insurance Fund decreased approximately $2.4 million from June 30, 2006 to $19.9 million due mainly to decreased claims exposure in workers’ compensation. The decreased claims exposure is a result of a number of changes to the Risk Management program, including an increased focus on customer service and meeting the needs of the injured employee, more proactive management of each claim by Risk Management staff and the City’s new third party administrator (SCRMA), and more attention to workers’ compensation litigation management. o Workers’ Compensation future liability decreased approximately $3,458,643.|1010| o General Liability future liability increased approximately $1,034,435.|1010| |1010| This amount has been adjusted to account for expenditures which have been reclassified to different funds to comply with various requirements. |1010| As determined by Bay Actuarial as of June 30, 2007. |1010| As determined by Bay Actuarial as of June 30, 2007. Page 3 of 13 4 Other Fund Highlights: Revenues The outstanding Refuse Fund Loan amount will be approximately $1.227 million at the end of fiscal 2006-07. o The Budget & Finance Subcommittee expressed a desire to address the issue of expanding the frequency and scope of services for recycling and trash pickup in commercial areas. The Public Works Department is working with the City Manager’s Office on this issue, and will be bringing a report to the full City Council. Overall, total City revenues through the end of 2006-07 are ahead of last year’s receipts and are at 107.5% of total projected receipts. o Receipts from Enterprise Funds came in at approximately 108.3%. Refuse and Sewer Fund revenues came in slightly over projections. Transportation received funds throughout the fiscal year for an STA Grant in the amount of approximately $1.5 million. Budgeted projections were for $250,000. o The Parking Improvement Fund has surpassed projections, and is currently at 132.1% of estimates. A large portion of this increase is due to filming permits related to parking. o Arts in Public Places received some large receipts in fiscal 2006-07, which brought their total revenues to $346,492, or 268.6% of projections. o The Grants Capital Fund received final reimbursements for projects done in prior fiscal years. These included $716,890 from the MTA for Project 804 – Traffic Flow Monitoring; $310,800 from the California State Coastal Conservancy for Project 801 – Ballona Creek Stormwater Quality; funds from Prop 12 totaling approximately $312,500 for Project 819 the Teen Center Remodel; $365,364 for Project 850 – Reconstruction of the Plunge Building. o The Parks Facilities Fund came in much higher than anticipated at approximately $73,000, and some of the funds were appropriated for small Parks capital projects in fiscal 2007-08. Expenditures Enterprise Funds: The Refuse (88.2%), Transportation (72.7%), and Sewer Fund (89.1% of operating) expenditures are well below budget for the end of fiscal 2006-07. Based on the audited information for fiscal 2006-07, revenues surpassed expenditures for these three funds. Refuse grew approximately $450,000 further towards a positive balance during fiscal 2006-07, and should hit that goal during fiscal 2007-08. The Equipment Maintenance and Fleet Services Division, an Internal Services Division, exceeded budget by approximately 2.5%. This was attributable to an increase in petroleum prices during the year, and an increase in repair and maintenance needs during fiscal 2006-07. These increases are very difficult to predict when developing the budget, and staff performs admirably in keeping costs down where possible. Conclusion: Overall, the City’s financial position at the end of fiscal 2006-07 is what we anticipated. Revenues came in much stronger at the end of the year, which helped keep the reserve at an acceptable level and enabled the City to fund some important capital improvement projects in the 2007-08 budget year, and expenditures ended the year under the spending assumption primarily due to vacancies. Page 4 of 13REVENUE AND EXPENDITURE CHARTS CHART 1 -10,000,000|1010|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 Preliminary Year-end 2005-06 2006-07 CHART 2 |1010|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 Expenditures Year to Date 2005-06 2006-07 5 Page 5 of 13CHART 3 -2,000,000|1010|2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 July August September October November December January February March April May June General Fund Revenues Collected by Month 2005-06 2006-07 CHART 4 |1010|2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 July August September October November December January February March April May June General Fund Expenditures by Month Preliminary Year-end 2005-06 2006-07 6 Page 6 of 13CITY OF CULVER CITY SUMMARY OF REVENUES FINAL YEAR-END REPORT FISCAL 2005-06 AND 2006-07 EXHIBIT A PERCENT PERCENT ADOPTED ADJUSTED RECEIPTS RECEIVED YEAR END ADOPTED ADJUSTED RECEIPTS RECEIVED BUDGET BUDGET AS OF 6/30/06 AS OF DATE RECEIPTS BUDGET BUDGET AS OF 6/30/07 AS OF DATE 2005-06 2005-06 2005-06 2005-06 2005-06 2006-07 2006-07 2006-07 2006-07 GENERAL FUND PROPERTY TAX 1,804,000 1,937,000 2,307,410 119.1% 2,307,410 3,048,000 3,048,000 3,205,574 105.2% SALES TAX 17,640,000 16,240,000 17,267,196 106.3% 17,267,196 17,650,000 17,650,000 18,198,893 103.1% PUBLIC SAFETY SALES TAX 350,000 350,000 366,841 104.8% 366,841 361,000 361,000 369,193 102.3% BUSINESS TAX 8,275,000 8,275,000 8,551,215 103.3% 8,551,215 8,804,100 8,804,100 9,183,833 104.3% FRANCHISE TAX 1,375,000 1,375,000 1,212,771 88.2% 1,212,771 1,200,000 1,200,000 1,253,283 104.4% REAL PROP.TRANS TAX 2,025,000 2,025,000 2,652,073 131.0% 2,652,073 2,517,000 2,648,942 2,965,289 111.9% UTILITY TAXES 13,340,000 13,340,000 13,169,207 98.7% 13,169,207 13,380,000 13,380,000 13,891,149 103.8% TRANS OCC TAX 2,250,000 2,250,000 2,310,813 102.7% 2,310,813 2,100,000 2,100,000 3,224,328 153.5% COM/IND DEV TAX 1,663,750 1,663,750 1,528,241 91.9% 1,528,241 372,640 372,640 558,648 149.9% LICENSES AND PERMITS 1,751,800 1,759,300 1,846,849 105.0% 1,846,849 1,479,551 1,489,551 1,679,605 112.8% INTERGOVERNMENTAL 2,540,000 2,907,000 2,954,680 101.6% 2,954,680 2,942,670 2,960,670 3,061,890 103.4% CHARGES FOR SERVICES 7,592,620 7,592,620 8,176,162 107.7% 8,176,162 8,450,919 8,532,237 9,442,156 110.7% FINES AND FORFEITS 3,925,000 3,925,000 4,242,405 108.1% 4,242,405 4,370,000 4,370,000 4,542,779 104.0% USE OF MONEY & PROPERTY 905,500 905,500 855,273 94.5% 855,273 954,000 954,000 1,817,041 190.5% INTER FUND/DEPARTMENTAL 5,862,097 5,862,097 5,653,910 96.4% 5,653,910 5,574,047 5,574,047 5,083,490 91.2% OTHER REVENUES 105,700 136,100 2,899,504 2130.4% 2,899,504 107,690 138,685 170,814 123.2% OTHER 1,391,500 7,062,301 7,035,805 99.6% 7,035,805 1,438,866 1,470,704 1,490,209 101.3% TOTAL GENERAL FUND 72,796,967 77,605,668 83,030,355 107.0% 83,030,355 74,750,483 75,054,576 80,138,174 106.8% BUILDING SURCHARGE FUND 50,000 52,708 86,741 164.6% 86,741 50,000 50,000 100,388 200.8% GRANTS OPERATING FUND 1,095,525 2,280,088 1,324,460 58.1% 1,324,460 1,154,296 2,641,880 2,522,488 95.5% CDBG - OPERATING GRANT FUND 0 87,994 98,484 111.9% 98,484 78,712 78,712 66,622 84.6% CDBG - CAPITAL GRANT FUND 0 0 230,298 0.0% 230,298 58,292 288,824 288,492 99.9% PROP A LOCAL RETURN FUND 590,390 590,390 666,857 113.0% 666,857 632,343 632,343 698,240 110.4% PROP C LOCAL RETURN FUND 489,698 489,698 594,869 121.5% 594,869 974,017 974,017 615,476 63.2% ASSET SEIZURES FUND 0 0 99,407 0.0% 99,407 0 0 98,340 100.0% SECTION 8 HOUSING 2,846,104 2,846,104 2,046,839 71.9% 2,046,839 2,554,548 2,554,548 2,509,632 98.2% FISCAL 2006-07 * Of this amount, $5,636,805 is from a transfer of funds from the RDA for land acquisition transactions. This funding is not available for use, and in the CAFR is listed in the catgory "Reserved for land held for resale." FISCAL 2005-06 * Page 7 of 13CITY OF CULVER CITY SUMMARY OF REVENUES FINAL YEAR-END REPORT FISCAL 2005-06 AND 2006-07 EXHIBIT A PERCENT PERCENT ADOPTED ADJUSTED RECEIPTS RECEIVED YEAR END ADOPTED ADJUSTED RECEIPTS RECEIVED BUDGET BUDGET AS OF 6/30/06 AS OF DATE RECEIPTS BUDGET BUDGET AS OF 6/30/07 AS OF DATE 2005-06 2005-06 2005-06 2005-06 2005-06 2006-07 2006-07 2006-07 2006-07 FISCAL 2006-07 FISCAL 2005-06 ENTERPRISE FUNDS REFUSE FUNDS 9,879,387 9,909,387 9,853,766 99.4% 9,853,766 10,410,618 10,410,618 10,532,475 101.2% MUNICIPAL BUS 15,431,787 15,431,787 15,662,503 101.5% 15,662,503 16,025,724 16,025,724 18,510,625 115.5% SEWER FUND 8,270,000 8,270,000 9,143,807 110.6% 9,143,807 8,598,900 8,598,900 8,892,265 103.4% LANDSCAPE MAINT. DIST 47,000 47,000 52,785 112.3% 52,785 47,000 47,000 56,267 119.7% TOTAL ENTERPRISE FUNDS 33,628,174 33,658,174 34,712,861 103.1% 34,712,861 35,082,242 35,082,242 37,991,632 108.3% CAPITAL IMPROVEMENT FUNDS ARTS IN PUBLIC PLACES 112,000 129,000 71,561 55.5% 71,561 129,000 129,000 346,492 268.6% NEW DEV. IMPACT FEE FUND 3,000 3,000 2,917 97.2% 2,917 3,000 3,000 7,671 255.7% SPECIAL GAS TAX FUND 750,000 750,000 935,401 124.7% 935,401 750,000 750,000 784,259 104.6% PARK FACILITIES FUND 5,000 5,000 12,052 241.0% 12,052 5,000 5,000 73,869 1477.4% CAPITAL IMPV/ACQ FUND 2,615,000 2,693,016 1,704,678 63.3% 1,704,678 1,429,000 2,154,459 2,102,402 97.6% PARKING IMPROVEMENT FUND 782,800 782,800 1,000,473 127.8% 1,000,473 822,200 822,200 1,086,203 132.1% GRANTS CAPITAL FUND 949,660 1,615,387 1,579,193 97.8% 1,579,193 0 1,312,531 2,349,067 179.0% TOTAL CAPITAL IMPROVEMENT FUNDS 5,217,460 5,978,203 5,306,275 88.8% 5,306,275 3,138,200 5,176,190 6,749,963 130.4% INTERNAL SERVICE FUNDS GRAPHIC SERVICES 564,283 564,283 530,736 94.1% 530,736 0 0 0 0.0% EQUIPMENT REPLACEMENT 1,881,311 1,881,311 1,832,414 97.4% 1,832,414 1,896,851 1,896,851 2,196,112 115.8% CITY GARAGE 5,527,574 5,727,574 5,828,468 101.8% 5,828,468 6,212,059 6,212,059 6,409,769 103.2% RISK MANAGEMENT FUND 8,586,040 8,586,040 9,073,695 105.7% 9,073,695 7,515,002 7,515,002 7,876,594 104.8% STORES 1,422,250 1,422,250 1,327,361 93.3% 1,327,361 1,422,250 1,442,250 1,523,077 105.6% INNOVATION FUND 5,351 11,903 90,643 761.5% 90,643 11,412 11,412 28,609 250.7% TOTAL INTERNAL SERVICE FUNDS 17,986,809 18,193,361 18,683,317 102.7% 18,683,317 17,057,574 17,077,574 18,034,161 105.6% TOTAL OPERATING AND CIP FUNDS 134,701,127 141,782,388 146,880,763 103.6% 146,880,763 135,530,707 139,610,906 149,813,608 107.3% LESS: INTERNAL SERVICE FUNDS 17,986,809 18,193,361 18,683,317 102.7% 18,683,317 17,057,574 17,077,574 18,034,161 105.6% TOTAL BUDGET 116,714,318 123,589,027 128,197,446 103.7% 128,197,446 118,473,133 122,533,332 131,779,447 107.5% Page 8 of 13CITY OF CULVER CITY SUMMARY OF EXPENDITURES COMPARISON OF YEAR END 2005-06 AND 2006-07 ATTACHMENT B ACTUAL ACTUAL ADOPTED ADJUSTED EXPENDED PERCENT ADOPTED ADJUSTED EXPENDED PERCEN BUDGET BUDGET YEAR-END EXPENDED* BUDGET BUDGET YEAR-END EXPENDE 2005-06 2005-06 2005-06 2005-06 2006-07 2006-07 2006-07 2006-07 GENERAL GOVERNMENT CITY COUNCIL 231,903 300,404 217,979 72.6% 210,897 265,161 189,132 71.3% CITY MANAGER 975,118 1,009,521 977,106 96.8% 1,000,490 1,025,699 1,042,487 101.6% CITY CLERK 371,350 383,750 378,014 98.5% 382,660 426,449 416,673 97.7% CITY TREASURY 2,766,083 2,813,518 2,530,472 89.9% 2,806,112 3,126,968 2,962,342 94.7% CITY ATTORNEY 1,937,816 2,029,397 2,128,686 104.9% 1,896,541 2,025,603 1,925,194 95.0% ADMIN/BUDGET & FINANCE 1,041,531 1,040,644 939,608 90.3% 1,119,484 1,203,139 1,163,842 96.7% PERSONNEL 1,057,776 1,131,753 1,175,477 103.9% 957,208 1,145,060 1,111,762 97.1% INFORMATION TECH. 2,216,651 2,266,182 2,148,140 94.8% 2,654,587 2,833,876 2,577,749 91.0% TOTAL GENERAL GOVERNMENT 10,598,228 10,975,169 10,495,482 95.6% 11,027,979 12,051,955 11,389,181 94.5% PARKS, REC. & COMMUNITY SVCS 5,967,440 5,993,989 5,781,612 96.5% 6,174,663 6,529,258 6,271,371 96.1% POLICE DEPARTMENT 26,900,407 27,049,445 26,402,914 97.6% 27,429,735 28,721,518 27,612,692 96.1% FIRE DEPARTMENT 13,980,400 14,240,541 13,893,958 97.6% 13,771,360 14,539,593 14,019,593 96.4% COMMUNITY DEVELOPMENT 5,667,766 5,908,349 5,534,172 93.7% 5,850,224 6,327,400 5,656,226 89.4% PUBLIC WORKS 8,092,917 8,304,518 7,930,412 95.5% 8,193,357 8,670,897 8,242,887 95.1% NON-DEPARTMENTAL 3,896,880 3,470,063 1,678,936 48.4% 4,983,050 2,627,180 2,519,698 95.9% Transfers 1,903,940 1,907,271 1,911,548 100.2% 1,238,071 1,254,958 1,223,884 97.5% Projected excess appropriations (3,000,000) (3,000,000) 0 0.0% (2,650,000) (2,650,000) 0 0.0% TOTAL GENERAL FUND 74,007,978 74,849,345 73,629,034 98.4% 76,018,439 78,072,759 76,935,532 98.5% BUILDING SURCHARGE FUND 50,000 52,708 3,334 0.0% 50,000 51,016 35,587 69.8% OPERATING GRANTS 1,095,525 2,383,351 1,818,461 76.3% 1,154,296 2,139,350 1,987,499 92.9% CDBG OPERATING FUND 0 87,994 87,994 100.0% 78,712 78,712 66,623 84.6% TOTAL SEC. 8 FUND 2,560,548 2,583,995 1,704,954 66.0% 2,503,325 2,527,580 1,712,556 67.8% TOTAL PROP A FUND 590,390 590,390 590,399 100.0% 632,343 632,343 632,340 100.0% TOTAL PROP C FUND 545,927 545,927 870,709 159.5% 974,017 974,017 767,187 78.8% TOTAL ASSET SEIZURE FUND 0 988,344 61,296 6.2% 0 754,822 41,075 5.4% TOTAL OPERATING 78,850,368 82,082,054 78,766,181 96.0% 81,411,132 85,230,599 82,178,399 96.4% FISCAL 2005-06 FISCAL 2006-07 Page 9 of 13CITY OF CULVER CITY SUMMARY OF EXPENDITURES COMPARISON OF YEAR END 2005-06 AND 2006-07 ATTACHMENT B ACTUAL ACTUAL ADOPTED ADJUSTED EXPENDED PERCENT ADOPTED ADJUSTED EXPENDED PERCEN BUDGET BUDGET YEAR-END EXPENDED* BUDGET BUDGET YEAR-END EXPENDE 2005-06 2005-06 2005-06 2005-06 2006-07 2006-07 2006-07 2006-07 FISCAL 2005-06 FISCAL 2006-07 ENTERPRISE AND USER FEE FUNDS *** TOTAL REFUSE 10,054,058 10,294,716 9,462,812 91.9% 10,810,594 11,420,760 10,077,737 88.2% TOTAL TRANSIT 17,279,529 23,566,958 16,545,860 70.2% 17,505,550 24,155,438 17,556,687 72.7% TOTAL SEWER 9,762,601 12,163,826 6,859,834 56.4% 10,263,767 14,554,703 8,130,512 55.9% TOTAL LANDSCAPE 47,000 47,000 47,000 100.0% 47,000 47,000 47,000 100.0% TOTAL ENTERPRISE 37,143,188 46,072,500 32,915,506 71.4% 38,626,911 50,177,901 35,811,936 71.4% CAPITAL IMPROVEMENT FUNDS ART IN PUBLIC PLACES 213,983 611,090 252,437 41.3% 138,000 495,742 140,110 28.3% COMMUNITY DEVELOPMENT 100,000 123,705 14,026 11.3% 0 59,679 57,312 96.0% GAS TAX 1,267,840 1,619,523 530,354 32.7% 722,708 1,943,403 919,950 47.3% PARK FACILITIES 60,000 372,722 200,237 53.7% 0 118,486 16,727 14.1% IMPROVEMENT & ACQUISITION 2,239,082 4,898,814 1,098,147 22.4% 1,321,839 6,000,128 1,428,409 23.8% PARKING IMPROVEMENT 780,000 802,703 786,064 97.9% 780,000 796,639 780,000 97.9% CAPITAL GRANTS 949,660 3,792,397 1,686,478 44.5% 0 2,940,466 550,755 18.7% CDBG CAPITAL FUND 0 67,300 212,134 315.2% 58,292 356,124 297,832 83.6% TOTAL CAPITAL IMPROVE FUND 5,610,565 12,288,254 4,567,743 37.2% 3,020,839 12,710,667 4,191,095 33.0% INTERNAL SERVICE FUNDS GRAPHIC SERVICES 564,283 567,275 430,365 75.9% 0 0 19,471 0.0% EQUIPMENT REPLACEMENT 3,108,452 4,583,450 2,031,337 44.3% 1,220,828 3,797,038 976,587 25.7% EQUIPMENT MAINTENANCE 5,525,455 5,787,704 5,981,279 103.3% 6,208,557 6,369,462 6,530,134 102.5% SELF INSURANCE** 7,583,104 7,701,572 6,242,112 81.0% 7,403,121 7,442,927 5,675,234 76.3% CENTRAL STORES 1,422,250 1,424,148 1,257,596 88.3% 1,422,250 1,457,844 1,460,098 100.2% INNOVATION 10,000 10,000 10,000 100.0% 0 159,989 0 0.0% TOTAL INTERNAL SERVICE FUND 18,213,544 20,074,149 15,952,689 79.5% 16,254,756 19,227,260 14,661,524 76.3% TOTAL BUDGET BEFORE ADJ. 139,817,665 160,516,957 132,202,119 82.4% 139,313,638 167,346,427 136,842,954 81.8% LESS INTERNAL SERVICE FUND 18,213,544 20,074,149 15,952,689 79.5% 16,254,756 19,227,260 14,661,524 76.3% TOTAL BUDGET 121,604,121 140,442,808 116,249,430 82.8% 123,058,882 148,119,167 122,181,430 82.5% * 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. Page 10 of 13Adj. Budget Actual Difference ANNUAL CASH FLOW 2006-07 2006-07 Beginning Unrestricted Fund Balance 22,900,000 22,900,000 RDA REVENUES Tax Increment Revenue 24,220,000 28,461,076 4,241,076 Other Ongoing Revenue 3,229,204 5,173,282 1,944,078 One-time Revenue (Property Sale) 755,000 12,114,107 11,359,107 TOTAL RDA REVENUES 28,204,204 45,748,465 17,544,261 RDA GENERAL EXPENDITURES 2006-07 2006-07 Tax Increment Indebtedness Debt Service 13,984,459 13,984,459 0 Housing Set Aside 4,844,000 5,692,915 848,915 Statutory Pass Through 426,000 389,916 (36,084) County Admin Fees 682,000 1,452,081 770,081 CCUSD (CA #2) 1,254,153 1,217,774 (36,379) Interfund Transfer - 1,685,381 1,685,381 Loan Repayment to City - - 0 ERAF - - 0 ERAF Loan Payment to Housing - - 0 SubTotal TI Indebtedness 21,190,612 24,422,526 3,231,914 Administrative Expenses Administration-Salaries* 1,559,551 1,509,821 (49,730) Administration. - Supplies/Operations 526,974 414,373 (112,601) Administration - Contract Services 1,450,922 869,945 (580,977) City Cost Allocation 2,456,506 2,274,546 (181,960) SubTotal Admin Expenses 5,993,953 5,068,685 (925,268) Subtotal -- General Expenditures 27,184,565 29,491,211 2,306,646 ONGOING PROGRAM/PROJECT EXPEN 2006-07 2006-07 Cardiff Parking Structure 514,598 350,546 (164,052) Children's Events 5,000 4,115 (885) Culver City Music Festival 114,400 46,786 (67,614) Economic Development 702,702 294,445 (408,257) Farmers Market 68,515 45,155 (23,360) Historic Preservation - - 0 Ince Parking Structure 537,906 353,563 (184,343) Ivy Substation 25,071 9,355 (15,716) Public Outreach 27,500 11,046 (16,454) Music in the Chambers 12,500 10,317 (2,183) Pacific Theaters 66,000 - (66,000) Property Management - General 340,776 428,256 87,480 Rehab Patrol Services 325,000 325,000 0 Speaker Series - The Art Of... 39,022 25,232 (13,790) Special Events 5,000 3,809 (1,191) Virginia Parking Lot 39,328 27,297 (12,031) Watseka Parking Lot 237,051 116,449 (120,602) Subtotal -- Ongoing Programs/Projects 3,060,369 2,051,371 (1,008,998) REDEVELOPMENT AGENCY UNRESTRICTED FUNDS: 2006-07 Budget vs. Actual Page 11 of 13Adj. Budget Actual Difference ANNUAL CASH FLOW 2006-07 2006-07 REDEVELOPMENT AGENCY UNRESTRICTED FUNDS: 2006-07 Budget vs. Actual CURRENT PROJECT EXPENDITURES 2006-07 2006-07 Acquisition Administration Costs 267,071 41,924 (225,147) Washington/Centinela Sites 1,054,194 825,390 (228,804) Washington/National Sites 1,386,334 1,187,693 (198,641) West Culver Lofts 36,000 9,018 (26,982) Encore Motel Area 30,000 508 (29,492) Town Plaza Maintenance 26,809 18,197 (8,612) Sepulveda MTA Grant 150,000 - (150,000) Sepulveda Projects 75,000 23,669 (51,331) Downtown Parcel B 10,000 3,248 (6,752) Hayden Revitalization - Smashbox - - 0 Kirk Douglas Theatre 10,000 - (10,000) Downtown Bid Conversion 777 - (777) Downtown Bid Conversion 993 - (993) Property Acquisition 13,500,000 22,902,358 9,402,358 Subtotal -- Current Projects 16,547,178 25,012,005 8,464,827 POTENTIAL PROJECT EXPENDITURES 2006-07 2006-07 Miscellaneous Contingency Funds - - 0 Culver Sawtelle 30,000 - (30,000) Downtown Opportunity Sites 30,000 - (30,000) Hayden Revitalization - MTA Spur 29,274 14,990 (14,284) Lindblade Opportunity Sites 30,000 221 (29,779) Mid Washington/Pleasant View 30,000 21,178 (8,822) Subtotal -- Potential Projects 179,274 36,389 (142,885) TOTAL EXPENDITURES 46,971,386 56,590,9769,619,590 Projected Annual Surplus/Deficit (18,767,182) (10,842,511) Year-end CAFR Reconciliation Adjustment 500,000 Ending Unrestricted Fund Balance 4,133,000 12,557,000 Page 12 of 132006-07 2006-07 ADJUSTED ACTUAL DIFFERENCE ANNUAL CASH FLOW BUDGET AVAILABLE FUND BALANCE - 7/1 12,030,775 12,030,775 TRANSFER IN 0 1,685,381 1,685,381 LOAN FROM CITY 0 9,075,698 9,075,698 INTEREST 240,056 1,826,204 1,586,148 TOTAL AVAILABLE RESOURCES 12,270,831 24,618,058 12,347,227 TOTAL BOND EXPENDITURES COMPONENT AREA 1 93700 Fire Station 3 2,896,933 257,503 (2,639,430) SubTotal Component Area 1 2,896,933 257,503 (2,639,430) COMPONENT AREA 2 No Projects SubTotal Component Area 2 00 COMPONENT AREA 3 93400 Downtown Street Improvements 4,880,782 331,637 (4,549,145) 93600 Plunge Remodel 95,065 92,681 (2,384) 94801 Wash. Streetscape Projects 69,798 69,798 0 92700 Town Plaza Infrastructure 0 0 0 92620 Washington/National Sites 850,000 85 (849,915) SubTotal Component Area 3 5,895,645 494,201 (5,401,444) COMPONENT AREA 4 93500 Public Works Street Improvements 270,000 0 (270,000) 93501 Culver Blvd Keystone to Jasmine 120,667 120,667 0 93502 Washington Blvd/Reid Ave 95,000 41,264 (53,736) 93503 Washington Blvd/Elenda Ave 517,765 515,405 (2,360) 94200 Kirk Douglas Theater 0 0 0 94500 Historic Rehab 0 0 0 94600 East Washington Rehab Grant 39,975 39,975 0 96900 Senior Center - 0 0 92630 Baldwin Hotel 38,800 2,960 (35,840) 93200 West Washington Rehab 120,000 60,000 (60,000) 96000 Property Acquisition 0 0 0 92900 Sepulveda Rehab Grant 0 0 0 92610 Washington/Centinela Cites 0 0 0 SubTotal Component Area 4 1,202,207 780,271 (421,936) TOTAL PROGRAM EXPENSES 9,994,785 1,531,975 (8,462,810) Year-end CAFR Reconciliation Adjustment 375,000 AVAILABLE FUND BALANCE - 6/30 2,276,046 23,461,000 REDEVELOPMENT AGENCY TAX EXEMPT BOND FUNDS: 2006-07 Budget vs. Actual Page 13 of 13