Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: FEBRUARY 17, 2004

SUBJECT: FY03-04 MIDYEAR FINANCIAL REPORT

Staff Coordinator: Kathryn Downs, Accounting Manager

RECOMMENDATION

1) Receive and file the midyear financial report; and

2) ADOPT RESOLUTION NO. 2004- , AMENDING RESOLUTION NO. 2002-42, THE BUDGET APPROPRIATION FOR FY03-04, TO INCREASE EXPENDITURE APPROPRIATIONS IN THE GENERAL FUND, STREET MAINTENANCE FUND, AND CAPITAL IMPROVEMENT PROJECTS FUND.

EXECUTIVE SUMMARY

Based upon Staff’s analysis of the City’s financial activities during the first half of FY03-04, it appears that revenues and expenditures will generally approximate the budget. Except for an insignificant amount in the Waste Reduction fund, "projected" fund balances as of June 30, 2004 are expected to exceed Estimated fund balances, as presented in the FY03-04 budget. Staff offers the following noteworthy findings in the FY03-04 midyear report:

  • On November 17, 2003, Governor Schwarzenegger issued an executive order to reinstate the backfill portion of Vehicle License fee payments ("VLF") to cities and counties, effective January 1, 2004. If the Governor’s executive order is not challenged and the City continues to receive full VLF payments for the remainder of FY03-04, including the VLF backfill, the League of California Cities has estimated the City will receive about $1.7 million of VLF during FY03-04. If the Governor’s executive order is challenged, there is a possibility that the City would be required to return all VLF backfill received during FY03-04. In light of the uncertainty of future action regarding VLF, Staff believes it is prudent to conservatively estimate VLF revenue at the budgeted amount of $816,100 for FY03-04. The budget was based upon the assumption that the City would receive no VLF backfill during FY03-04.
  • On December 11, 2003, the City received an insurance settlement payment for the emergency San Ramon storm drain project in the amount of $1.7 million. The insurance settlement was not anticipated at the time of budget preparation.

In the event the City Council elects to adopt the proposed budget adjustments (described herein), staff expects that the ending fund balances at the end of FY03-04 will still exceed the estimated fund balances as of June 30, 2004 per the original FY03-04 budget.

INTRODUCTION

The Municipal Code of the City of Rancho Palos Verdes requires that a midyear review of the annual budget be presented to the City Council. Based upon Staff’s analysis of the City’s financial activities during the first half of FY03-04, it appears that revenues and expenditures will generally approximate the budget, except as described otherwise in this report.

The Summary Schedule of General Fund Revenue is presented below. Discussion regarding revenue projections for several other funds of the City has been included later in the report. It is important to understand that these revenue projections are based upon Staff's analysis using trend comparisons with previous years, reports provided by state, county and local agencies, as well as direct conversations with these agencies. It should be noted that future economic activity, legislation and policy decisions, as well as any other unforeseen circumstances could affect the City's revenue stream for the remainder of FY03-04.

The midyear financial report also includes discussion and analysis of anticipated expenditures, the status of major projects not yet completed, and other relevant developments related to the FY03-04 budget. If the activity of a particular fund, department or program is not discussed, there is nothing significant to report and revenues and expenditures are not expected to materially deviate from the amounts budgeted. Throughout the midyear financial report, Staff has recommended several budget adjustments necessary to assure budgetary compliance.

FINANCIAL REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS

Staff has included the "FY03-04 Combined Summary of Funds - Midyear Financial Report" (Attachment A) to summarize the estimated FY03-04 activity and ending fund balances for all funds within the City. The schedule includes revised revenue and expenditure projections.

GENERAL FUND

General Fund Revenue

It is difficult to estimate future revenue from sources such as utility users taxes and permit fees. These types of revenues are predicated on conditions outside the City’s control. As an example, planning and building permit revenues will fluctuate with the economy, as well as other conditions such as the weather. Additionally, several significant franchise tax revenues are received annually after preparation of the midyear report. For these revenues, Staff has either reported FY03-04 estimated revenues as the budgeted amount or a conservative figure based on the amount of information currently available.

SUMMARY SCHEDULE OF GENERAL FUND REVENUE:

 

 

 

Projected

 

 

Budget

Projected

Vs. Budget

Actual

Revenue Type

FY03-04

FY03-04

Variance

FY02-03

Property taxes

3,982,650

4,053,797

71,147

3,936,829

Sale and use tax

1,165,758

1,165,758

0

1,003,495

Property transfer tax

303,800

303,800

0

358,988

Transient occupancy tax

10,100

20,000

9,900

15,508

Franchise taxes

1,198,027

1,198,027

0

1,087,266

Utility user taxes

1,794,145

1,781,450

(12,695)

1,832,000

Business license tax

411,773

408,734

(3,039)

392,611

Planning permits

279,500

205,700

(73,800)

208,991

Building & safety permits

779,200

813,200

34,000

914,412

Other permits

84,300

84,300

0

189,815

Golf fees

175,000

135,000

(40,000)

149,917

Fines and forfeitures

78,500

73,200

(5,300)

115,448

Rental & fee revenue

253,065

270,503

17,438

295,124

Interest revenue

163,000

155,000

(8,000)

175,491

Charges for services

113,000

111,000

(2,000)

107,311

Motor vehicle license fees

816,100

816,100

0

2,727,808

Grant income

21,538

21,538

0

34,552

Other revenue

413,700

2,071,142

1,657,442

122,385

 

 

 

 

 

Total General fund revenues

12,043,156

13,688,249

1,645,093

13,667,951

Discussion and analysis regarding General fund revenues is presented below. If a particular revenue source is not discussed, there is nothing significant to report and anticipated revenues are not expected to materially deviate from the FY03-04 budget.

Property Taxes

Based upon projection information provided by the County, property tax revenues are expected to exceed $4 Million during FY03-04. This would represent a $71,147 increase over the amount budgeted for FY03-04 and a 3% increase over the actual amount received in FY02-03. The expected budget variance can be attributed to the steady increase in the property tax base over the past several years due to continued strength in the local real estate market.

Planning Permits – View Restoration Fees

During the preparation of the budget, Planning Staff anticipated that View Restoration Fees would increase during FY03-04. To date, actual FY03-04 View Restoration activity has actually decreased by 30% when compared to FY02-03 activity. FY03-04 expenditures for this program are $70,573 for July through December. FY02-03 expenditures for the same period were $101,164. As a result of the reduced activity, Staff expects to receive only $34,000 of the $84,000 budgeted for View Restoration Fees.

Golf Fees

During the preparation of the budget, Staff anticipated an increase in Golf Fee revenue from the FY02-03 amount of $149,917 to approximately $175,000 for FY03-04. The anticipated increase was due to the expected grand opening of all eighteen holes at Ocean Trails. However, FY03-04 Golf Fees received for July through December are twelve percent (12%) less than FY02-03 Golf Fees received for the same period. Based on year-to-date receipts and the status of the construction for the golf course amenities, Staff anticipates that only about $135,000 will be received for FY03-04.

Motor Vehicle License Fees (VLF)

On November 17, 2003, Governor Schwarzenegger issued an executive order to reinstate the backfill portion of VLF payments to cities and counties, effective January 1, 2004. There has been no challenge to this executive order; and the City has collected the full VLF payment, including backfill, for January 2004. Considering the State’s budget crisis, there is the possibility that the Governor’s executive order could be challenged prior to the end of FY03-04. A challenge could include a return of VLF backfill already received by the City during FY03-04.

Including the January VLF payment, the City has received a total of $841,722 for FY03-04. The total received includes VLF backfill of approximately $300,000. If the Governor’s executive order is not challenged and the City continues to receive full VLF payments, including backfill, for the remainder of FY03-04; the League of California Cities has estimated the City will receive about $1.7 million of VLF during FY03-04.

In light of the uncertainty of future action regarding VLF, Staff believes it is prudent to conservatively estimate VLF revenue at the budgeted amount of $816,100 for FY03-04. The budget was based upon the assumption that the City would receive no VLF backfill during FY03-04.

Other Revenue

On December 11, 2003, the City received an insurance settlement payment for the emergency San Ramon storm drain project in the amount of $1.7 million. This revenue was not anticipated at the time of budget preparation. Staff recommends a budget adjustment to increase revenues by $1.7 million.

General Fund Expenditures

Based on a historical analysis of prior years, total General fund expenditures for the first six months of the fiscal year should not exceed a range between 42% and 45% of budgeted appropriations in order to track within budgeted limits. Total General fund expenditures through December 31, 2003 were approximately 37% of budget; therefore, it appears estimated expenditures for FY03-04 will be within the total General fund budget. However, there are a few individual programs that are expected to vary from budget, as discussed below.

City Attorney

The City utilizes the services of Thomas & Thomas, LLP for its representation of the Indian Ridge Crest Gardens lawsuit. To date, a total of $67,650 has been expended during FY03-04. The City Manager’s office estimates that an additional $32,350, a total of $100,000, will be expended to Thomas & Thomas for legal services during FY03-04.

The City utilizes the services of Miller & Van Eaton, PLLC regarding proposed modifications to the City’s cable television franchise agreement with Cox Communications. To date, a total of $26,600 has been expended during FY03-04. The City Manager’s office estimates that an additional $23,400, or a total of $50,000, will be expended for legal services during FY03-04 for this project.

The need for these services was not certain at the time the budget was prepared. Staff requests a total budget adjustment of $150,000 for legal services provided by attorneys other than the City Attorney.

Information Technology – Data

After completion of the FY03-04 budget, SunGard HTE recalculated the cost of support services for the City’s CitySoft accounting software. The increase of the support fee is a result of spreading the support cost over fewer CitySoft clients, as more clients move to the SunGard HTE’s Financials solution. Staff requests a budget adjustment in the amount of $9,000 to accommodate the unanticipated increase of the support services during FY03-04. Staff has prepared a separate Staff report to City Council titled "Proposed Upgrade of Accounting Software"; dated February 17, 2004, that includes the recommendation to upgrade to the SunGard HTE Financials accounting solution.

Storm Water Quality

Although the County maintains the City’s sewer system, Staff directly responds to sewer spills in an effort to prevent spills from entering the City’s storm drain system. During FY03-04, there have been more sewer spills than expected. Therefore, cleaning costs have been more than anticipated. The FY03-04 budget for sewer spill cleaning is $8,000. Public Works Staff anticipates an additional $12,000, or a total of $20,000, will be required.

To help ensure compliance with Storm Water Quality regulations, the City performs an additional parking lot sweep at all City facilities before the rainy season. The cost of the additional sweeping is $9,000. Previously, this cost was expended in the Street Maintenance fund. The activity is driven by Storm Water Quality standards; therefore, Public Works Staff believes it is more appropriate to expend this cost from the Storm Water Quality program of the General fund.

The City retains a consultant for offshore water quality monitoring services. As reported in the January 8, 2004 Friday Report, the current cost of monitoring services is significantly less than expected. Public Works Staff anticipates the estimated savings of $25,000 will offset additional expenditures of $21,000 described above for sewer spill cleaning and additional parking lot sweeping. Therefore, no budget adjustment for the Storm Water Quality program is requested at this time.

Building Maintenance

The Building Maintenance budget includes custodial services for all City facilities. During FY03-04, custodial services have been added for the temporary Point Vicente Interpretive Center (PVIC) docent trailers and the RPV TV Channel 33 studio. Staff requests a budget adjustment in the amount of $6,000 for the cost of the additional custodial services.

Natural Community Conservation Plan (NCCP)

At the March 18, 2003 meeting, the City Council authorized the Mayor and City Clerk to execute a professional services agreement for $136,925 with Stewart Geo Technologies, Inc., to prepare new color digital ortho-photographic maps that will be used to complete the City’s NCCP.

The FY03-04 Equipment Replacement fund budget includes an appropriation of $80,000 for these maps. Planning Staff has determined that the City’s Federal NCCP grant could be used to pay for one-half of the cost of the maps ($68,463). Even though the expenditure will be funded with the NCCP grant, an expenditure appropriation is required within the General fund for the entire cost of the maps.

Staff requests a $69,000 General fund budget adjustment to appropriate the entire expenditure for the maps. The additional expenditure will be offset by additional grant income and will have no effect on the June 30, 2004 estimated General fund balance.

Estimated General Fund Balance, June 30, 2004

The ending unreserved fund balance (including continuing appropriations) in the General fund is estimated as follows:

Unreserved fund balance, July 1, 2003 $10,446,324

Estimated revenue, FY03-04 13,688,249

Estimated expenditures, FY03-04 (12,031,617)

Estimated fund transfers (net), FY03-04 (661,765)

Estimated unreserved fund balance, June 30, 2004 $ 11,441,191

The FY03-04 budget estimate of the June 30, 2004 unreserved General fund balance was approximately $8.3 million. The $3.1 million estimated favorable variance is primarily comprised of the following:

  • As described in the December 16, 2003 Staff report to City Council titled "FY02-03 Comprehensive Annual Financial Report, Audit Management Letter And Independent Auditors’ Report On Compliance And Internal Control", the General fund realized favorable FY02-03 variances for both revenues and expenditures totaling approximately $1.4 million.
  • On November 6, 2003, the City received $230,000 of General fund monies from the sale of Community Development Block Grant (CDBG) funds to the City of West Hollywood.
  • On December 11, 2003, the City received an insurance settlement payment for the emergency San Ramon storm drain project in the amount of $1.7 million.
  • On February 3, 2004, the City Council authorized an additional sale of CDBG funds in exchange for $93,750 of General funds.
  • To date, City Council has authorized an additional $215,776 of General fund appropriations during FY03-04.

If the City Council authorizes the budgeted adjustments described above, the June 30, 2004 estimated General unreserved fund balance would be $11,276,191 ($11,441,191 less $165,000 of requested budget adjustments).

The estimated General unreserved fund balance is greater than the City Council’s reserve policy level of 50% of annual General fund revenues. In light of the estimated excess of the unreserved fund balance, Public Works Staff will offer recommendations to the City Council regarding several capital project revisions in the near future.

CAPITAL IMPROVEMENT PROGRAMS

Capital Improvement Projects (CIP) Fund Revenue and Transfers In

Certain project construction costs are reimbursed with grant funds or transfers from restricted funds of the City (i.e. Proposition C and Quimby funds). The amount of FY03-04 grant revenue or transfers from other funds depends upon the percentage of project completion at fiscal year-end. Current year grant revenue and transfers-in will be less than budget, proportionate to the estimated decrease in year-end project expenditures. Such grant revenue and transfers-in will likely be carried over and re-budgeted to FY04-05 to match the period in which actual project expenditures will be incurred.

CIP Fund Expenditures

Eighteen projects, with total costs of approximately $7.2 Million, are budgeted for FY03-04. Historically, many projects are not completed prior to fiscal year-end and need to be re-budgeted to the next fiscal year. This is also true for FY03-04. An update about several projects is included below. If the activity of a particular project is not discussed, it merely indicates the project has been completed or Staff expects to complete the project, within budget, prior to June 30, 2004.

On-Call Services

The Infrastructure Improvements Administration program budget includes $25,000 for small-scale project engineering and urgent engineering projects, also referred to as "on-call services". To date, Public Works Staff has expended approximately $16,000 for on-call services related to the lot development at the end of Coolheights Road. Staff requests a budget adjustment in the amount of $15,000 to provide for any additional unforeseen on-call services required during FY03-04.

Crest Road Overlay (FY03-04 budget of $919,743, lifetime budget of $941,628)

The Crest Road Overlay project is expected to go out to bid this month. Public Works Staff expects to award contracts in March, begin construction in April, and complete the project in September 2004.

FY03-04 Residential Overlay ($470,000 budgeted)

The FY03-04 Residential Overlay project will go out to bid this month. Public Works Staff expects to award contracts in March, begin construction in April, and complete the project in September 2004.

Pavement Management Program Update ($10,000 budgeted)

On November 18, 2003, City Council authorized Staff to update the City’s Pavement Management Program for a total cost of $19,700. Staff requests a budget adjustment in the amount of $10,000 to fully appropriate the expenditure authorization.

Storm Drain Video Inspection and Master Plan (FY03-04 budget of $106,100, lifetime budget of $107,500)

Staff will begin video inspections of the City’s storm drain system this month. Public Works Staff expects completion of the Storm Drain Master Plan in April 2004.

Sewer Master Plan ($282,500 budgeted)

The Sewer Master Plan is progressing as planned, and Public Works Staff expects to complete the plan in July 2004.

Point Vicente Interpretive Center (PVIC) Expansion (FY03-04 budget of $3,500,000, lifetime budget of $4,398,477)

The PVIC Expansion project will go out to bid this month. Public Works Staff expects to award contracts in April, begin construction in May, and complete the project in March 2005.

Open Space Acquisition ($1,000,000 budgeted)

$1 Million is budgeted in FY03-04 for the City’s participation towards the proposed purchase of about 722 acres of coastal hillside along Palos Verdes Drive South in cooperation with the Palos Verdes Peninsula Land Conservancy ("PVPLC"). The PVPLC has committed to raising about $6 Million. The City and the PVPLC are striving to raise the remainder of the funds from State and federal grants totaling approximately $23 Million.

Forrestal Open Space Improvements (FY03-04 budget of $338,400, lifetime budget of $350,000)

The Forrestal Opens Space Improvements project includes drainage repairs and several repairs to trails for safety purposes. Public Works Staff expects the improvements will be completed by June 2004 within budget.

Estimated CIP Fund Balance, June 30, 2004

The ending CIP fund balance is estimated as follows:

Fund balance, July 1, 2003 $ 1,631,992

Estimated revenue, FY03-04 1,531,447

Estimated expenditures, FY03-04 (7,329,566)

Estimated fund transfers in, FY03-04 4,783,015

Estimated fund balance, June 30, 2004 $ 616,888

The FY03-04 budget estimate of the June 30, 2004 CIP fund balance was $295,197. The difference of $321,691 is primarily a result of the completion of residential overlay activities at a savings during FY02-03. If City Council authorizes the requested budget adjustments totaling $25,000, noted above, the June 30, 2004 estimated CIP fund balance would be $591,888.

Community Development Block Grant (CDBG) Fund Revenue

CDBG fund revenue is received from the Community Development Commission (CDC) as reimbursement for eligible expenditures approved by the CDC. As discussed in the CDBG Fund Expenditures section, not all of the budgeted projects will be completed by June 30, 2004. Therefore, estimated revenue from CDC reimbursements will be less than budget and proportionate to the decrease in actual expenditures.

CDBG Fund Expenditures

City Hall Elevator ($357,928 budgeted)

The City Hall Elevator project is currently out to bid. Public Works Staff expects to award contracts in March and begin construction in April. The estimated date of completion is September 2004.

Americans with Disabilities Act (ADA) Improvements ($120,000 budgeted)

The ADA Improvements project includes an upgrade to the restrooms at Hesse Park. The upgrade will make the restrooms compliant with ADA provisions. Public Works Staff anticipates design of the restrooms will be completed in June 2004 and construction will begin in FY04-05.

Home Improvement Program ($150,000 budgeted)

Two projects have been completed, one project is currently under construction, and four projects will start construction this month. An additional four projects are out to bid. Staff anticipates expending the entire budget amount by the end of the fiscal year.

Estimated CDBG Fund Balance, June 30, 2004

The CDBG program is managed assuming that all costs incurred will be approved and reimbursed by the CDC. Therefore, the CDBG fund is operated with annual revenues equal to annual expenditures. This management practice results in beginning and ending fund balances of zero.

Estimated Development Impact Mitigation (Environmental Excise Tax or EET) Fund Balance, June 30, 2004

Fund balance, July 1, 2003 $ 785,807

Estimated revenue, FY03-04 225,520

Estimated expenditures, FY03-04 (129,854)

Estimated transfers out, FY03-04 (455,520)

Estimated fund balance, June 30, 2004 $ 425,953

The FY03-04 budget estimate of the June 30, 2004 EET fund balance was $305,220. The difference of $120,733 is primarily attributable to the offset of the following:

  • On November 5, 2003, City Council instructed Staff to reimburse County Measure A funds received for the canceled Abalone Cove Beach Improvements project. As the Measure A funds to be reimbursed ($129,854) were previously spent for design and administration, the City was required to use another funding source to reimburse the County.
  • Staff estimated the EET fund would transfer approximately $560,000 to the CIP fund for the PVIC Expansion project. Additional Measure A monies became available for the PVIC Expansion project when the Abalone Cove Beach Improvements project was canceled. Therefore, the estimated EET PVIC Expansion funding transfer was reduced by approximately $250,000.

SPECIAL REVENUE FUNDS

Street Maintenance Fund Expenditures

Street Maintenance – Pavement Management

Staff requests a budget adjustment of $12,000 for blueprints, printing and legal notices. These costs were not included in the original FY03-04 budget; but are necessary to support the projects budgeted in this program, including slurry seal activities and Portuguese Bend road maintenance.

Estimated Street Maintenance Fund Balance, June 30, 2004

Fund balance, July 1, 2003 $ 878,363

Estimated revenue, FY03-04 844,900

Estimated expenditures, FY03-04 (2,071,758)

Estimated fund transfers in, FY03-04 777,190

Estimated fund balance, June 30, 2004 $ 428,695

The FY03-04 budget estimate of the June 30, 2004 Street Maintenance fund balance was $140,617. The difference of $288,078 is due to several favorable expenditure variances during FY02-03. If City Council authorizes the requested $12,000 budgeted adjustment noted above, the June 30, 2004 estimated CIP fund balance would be $416,695.

INTERNAL SERVICE FUNDS

Estimated Equipment Replacement Fund Balance, June 30, 2004

Fund balance, July 1, 2003 $ 2,291,615

Estimated revenue, FY03-04 479,620

Estimated expenditures, FY03-04 (869,727)

Estimated fund balance, June 30, 2004 $ 1,901,508

The FY03-04 budget estimate of the June 30, 2004 Equipment Replacement fund balance was $1,758,357. The favorable difference of $143,151 is primarily due to FY02-03 depreciation expense for computer equipment. In June 2002, the City Council adopted a $5,000 capitalization threshold for fixed assets. Therefore, in FY01-02, many capitalized computer items with original costs less than the new $5,000 threshold were written off. The FY02-03 budget was prepared in May 2001, before the new capitalization threshold was adopted. Therefore, actual FY02-03 depreciation was less than the depreciation expense calculated and budgeted for the Computer Equipment program in May 2001.

Finance and Information Technology have submitted a separate report, titled "Proposed Upgrade Of Accounting Software", dated February, 17, 2004. The report includes a recommendation to appropriate $80,000 in FY03-04 in the Equipment Replacement fund to upgrade the City’s accounting solution. In the event the City Council authorizes the budget adjustment proposed to enable the upgrade to SunGard HTE Financials, the estimate of the June 30, 2004 Equipment Replacement fund balance would be decreased by $80,000 to $1,821,508.

RECOMMENDED BUDGET ADJUSTMENTS

Staff recommends the following budget adjustments, as noted within this report.

General Fund Revenue Increases:

NCCP Grant #001-364-11 Grant Income $ 69,000

Insurance Settlement #001-375-10 Other Revenue $1,700,000

General Fund Expenditure Increases:

City Attorney #001-103-35 Professional Services $ 150,000

Information Technology #001-130-35 Professional Services $ 9,000

Building Maintenance #001-340-30 Maintenance Services $ 6,000

NCCP #001-405-35 Professional Services $ 69,000

Street Maintenance Fund Expenditure Increases:

Street Maint-Pavement #102-302-50 Operating Supplies $ 5,000

Street Maint-Pavement #102-302-54 Printing & Binding $ 5,000

Street Maint-Pavement #102-302-55 Legal Notice Publication $ 2,000

CIP Fund Expenditure Increases:

On-Call Services #330-930-35 Professional Services $ 15,000

Street Maint-Pavement #330-930-35 Professional Services $ 10,000

CONCLUSION

Except as discussed above, estimated revenues are expected to approximate the budget and estimated expenditures should be slightly less than budget in all funds of the City for FY03-04. Staff expects that the ending fund balances at the end of FY03-04 will still exceed the estimated fund balances as of June 30, 2004 per the original FY03-04 budget.

Respectfully submitted,

Dennis McLean

Director of Finance and Information Technology

Reviewed,

Les Evans

City Manager

RESOLUTION NO. 2004-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS

VERDES, AMENDING RESOLUTION 2003-42, THE BUDGET APPROPRIATION

FOR FISCAL YEAR 2003-2004, FOR BUDGET ADJUSTMENTS TO THE CITY'S GENERAL FUND, STREET MAINTENANCE FUND, AND CAPITAL IMPROVEMENT PROJECTS FUND

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and

WHEREAS, on June 3, 2003, the City Council of the City of Rancho Palos Verdes adopted Resolution 2003-42, approving a spending plan and authorizing a budget appropriation for FY03-04: and

WHEREAS, certain FY03-04 program and/or department expenditures, as described below, are expected to exceed the amount budgeted; and

WHEREAS, the City Council desires that the FY03-04 budget appropriation for certain expenditures be increased;

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustments be made to the FY03-04 budget:

Increase the General Fund budget as follows:

NCCP Grant #001-364-11 Grant Income $ 69,000

Insurance Settlement #001-375-10 Other Revenue $1,700,000

City Attorney #001-103-35 Professional Services $ 150,000

Information Technology #001-130-35 Professional Services $ 9,000

Building Maintenance #001-340-30 Maintenance Services $ 6,000

NCCP #001-405-35 Professional Services $ 69,000

Increase the Street Maintenance Fund budget as follows:

Street Maint-Pavement #102-302-50 Operating Supplies $ 5,000

Street Maint-Pavement #102-302-54 Printing & Binding $ 5,000

Street Maint-Pavement #102-302-55 Legal Notice Publication $ 2,000

Increase the Capital Improvement Projects Fund budget as follows:

On-Call Services #330-930-35 Professional Services $ 15,000

Street Maint-Pavement #330-930-35 Professional Services $ 10,000

PASSED, APPROVED, AND ADOPTED THE 17TH DAY OF FEBRUARY 2004.

___________________________

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2004- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on February 17, 2004.

_____________________________

CITY CLERK

CITY OF RANCHO PALOS VERDES