HomeMy WebLinkAbout03/02/87"'Tis easy to see, hard to foresee."
-Ben Franklin
AGENDA
SPECIAL MEETING HERMOSA BEACH
Monday, March 2,
MAYOR
John Cioffi
MAYOR PRO TEM
Etta Simpson
COUNCILMEMBERS
Tony DeBellis
Jim Rosenberger
June Williams
1987 Council
7:30 p.m.
All Council meetings are open
Complete agenda materials .are
the Police Department, Public
Clerk.
CITY COUNCIL
Chambers, City Hall
CITY CLERK
Kathleen Midstokke
CITY TREASURER
Norma Goldbach
CITY MANAGER
Gregory T. Meyer
CITY ATTORNEY
James P. Lough
to the public. PLEASE ATTEND.
available for public inspection in
Library and the Office of the City
PLEDGE OF ALLEGIANCE
ROLL CALL:
1. 1985-86 FINANCIAL AUDIT, DATED SEPTEMBER 22, 1986 AND
REPORT ON INTERNAL ACCOUNTING CONTROL AND MEMORANDUM OF
ADVISORY COMMENTS DATED SEPTEMBER 22, 1986 FROM CITY
AUDITOR GRANT THORNTON WITH RECOMMENDATIONS:
A. FROM CITY MANAGER GREGORY T. MEYER DATED FEBRUARY
25, 1987 TO ACCEPT THE AUDIT, AND;
FROM FINANCE ADMINISTRATOR VIKI COPELAND, DATED
JANUARY 8, 1987 TO IMPLEMENT REVISIONS TO INTERNAL
FINANCIAL CONTROLS.
2.
1986-87 MID -YEAR BUDGET REVIEW WITH CONSIDERATION OF
MODIFYING REVENUES, EXPENDITURESAND FUNDS AS
REPRESENTED BY THE RECOMMENDED REVISION TO THE
ESTIMATED REVENUES, RECAP OF EXPENDITURES AND BUDGET
SUMMARY BY FUND SHEETS AS ATTACHED. Memorandum from
City Manager Gregory T. Meyer dated February 26, 1987.
RECOMMENDED CHANGES IN REVENUES:
INCREASE GENERAL FUND REVENUES:
TRANSFER FROM GENERAL FUND TO
SEWER FUND
TRANSFER FROM GENERAL FUND TO
TRANSIT FUND, EFFECTIVE JULY 1,
1986
CLOSE OUT THE DEBT SERVICE FUND AND TRANSFER THOSE
MONIES OF $ 65,005 TO THE GENERAL FUND AND CREATE
A DEBT SERVICE DESIGNATION OF THAT AMOUNT
CLOSE OUT THE CAPITAL IMPROVEMENT FUND TRANSFERING
THOSE MONIES TO THE GENERAL FUND AND CREATE A DESIG-
NATION FOR CAPITALIMPROVEMENTS IN THE AMOUNT OF
$ 522,706;
APPROPRIATE AN ADDITIONAL $ 100,000 TO THE ASSET
REPLACEMENT GENERAL FUND RESERVE DESIGNATION -FOR
THAT PURPOSE;
APPROPRIATE $ 150,000 ADDITIONAL TO THE INSURANCE
FUND;
APPROPRIATE $ 21,314 TO THE CDBG FUND;
G. DESIGNATE $ 100,000 FROM THE GENERAL FUND TOWARD
PROSPECT PARK LAND ACQUISITION
DESIGNATE $ 50,000 FROM THE Pt.4K & RECREATION
FACILITIES FUND TOWARD PROSPEuT PARK LAND
ACQUISITION;
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▪ RECOMMENDED CHANGES IN EXPENDITURES:
1. INCREASE FIRE DEPARTMENT SALARIES APPROPRIATION
BY $ 101,000
2. APPROPRIATE AN ADDITIONAL $ 40,000 TO
PROSPECTIVE EXPENDITURES
. APPROPRIATE $ 12,000 TO PUBLIC WORKS, PARKS
FOR ATSF PROPERTY TAX PAYMENTS OF 1986 '87
. APPROPRIATE $ 37,824 TO THE INSURANCE FUND FOR
STATE UNEMPLOYMENT INSURANCE EXPENSES;
• APPROPRIATE $ 5,258 TO THE INSURANCE FUND FOR
MEDICARE EXPENDITURES,
. APPROPRIATE $ 96,893 FROM THE PARKING FUND TO
PAY OFF THE BARD STREET PROPERTY MORTGAGE
(MADDEN PROPERTY).;
• APPROPRIATE $ 8,750 TO THE POLICE DEPARTMENT FOR
THE CITY TO RE -JOIN THE AUTOMATED WANTS AND WAR-
RANTS SYSTEM; Memorandum from Public Safety
Director Steve Wisniewski dated February 13,
1987.
8. APPROPRIATE $ 5,000 TO THE POLICE DEPARTMENT FOR
RE -INSTITUTING A CRIME PREVENTION PROGRAM. Memo-
randum from Public Safety Director Steve Wis-
niewski dated February 17, 1987.
3. 1986-87 MID -YEAR REVIEW OF CAPITAL IMPROVEMENT PROGRAM.
STATUS OF CAPITAL IMPROVEMENT PROJECTS WITH REC-
OMMENDATION TO RECEIVE AND FILE THIS REPORT. Memo-
randum from Public Works Director Anthony Antich
dated February 19, 1987.
4. ADOPTING A SCHEDULE FOR CONSIDERATION OF THE 1987-88
BUDGET AND 1987-89 CAPITAL IMPROVEMENT PROGRAM. Memo-
randum from Assistant City Manager Alana M. Mastrian
dated February 17, 1987.
5. CONSIDERATION OF ASSIGNING RESPONSIBILITY FOR 1987 CITY
COUNCIL GOALS AND DEVELOPING RELATED TASKS. Memorandum
from City Manager Gregory T. Meyer dated February 26,
1987.
ADJOURNMENT
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City of Hermosa Beach
PUBLIC NOTICE
SPECIAL MEETING - MARCH 2, 1987
NOTICE IS HEREBY GIVEN that the City Council of the City of Her-
mosa Beach will on Monday, March 2, 1987, hold a Special Meeting
for the purpose of acting on the following items:
1. 1985-86 Financial Audit and Management Letter with recom-
mendation to accept Audit and implement revisions to Internal
Financial Controls;
2. 1986-87 Mid -Year Budget Review with consideration of modify-
ing Revenues & Expenditures;
3. 1986-87 Mid -Year Review of Capital Improvement Program;
4. Adopting a Schedule for consideration of the 1987-88 Budget;
5. Consideration of assigning responsibility for 1987 City Council
Goals and developing related tasks.
SAID MEETING TO BE HELD at 7:30 P.M., in the Council
Chamber, City Hall, 1315 Valley Drive, Hermosa Beach, California.
FOR FURTHER INFORMATION, please contact the Office of the
City Manager at 376-6984, ext. 201.
KATHLEEN MIDSTOKKE,
City Clerk ER 2-19-87 HB548A
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Ads are not taken over the
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O0tober 21, 1986
REQUEST FOR AN EXTRA -BUDGETARY APPROPRIATION OF $5,000 FOR
CRIME PREVENTION AND COMMUNITY AWARENESS PROGRAM
RECOMMENDATION:
It is recommended that City Council approve a $5,000 extra-
budgetary appropriation for crime prevention and the Community
Awareness Program (CAP) for the balance of the fiscal year.
ABSTRACT:
This will provide funding in the Crime Prevention Projects Ac-
count for the purchase of additional multiuse (citywide) video
equipment; and provide funds for the CAP cable television show.
BACKGROUND:
Last fiscal year (1985-86), Council authorized $5,000 for the CAP
show startup, operating expenses, and equipment purchase. The
police department was able to purchase video camera equipment
from the funds. Besides police use for the show and crime scene
availability, the equipment is being used to video (live) City
Council meetings.
The police department proposes to purchase a portable power pack
and recorder for field use. This will allow use by building,
planning and public works in taping in the field for presenta-
tions, etc.
Because of severe financial constraints at budget time -- and in
order to meet the 5% reduction over the previous year's budget --
the request for crime prevention funding and CAP operating expen-
ses was not presented in the budget package. This appropriation
will also allow for some funding, although limited, for the lat-
ter purposes.
ANALYSIS:
Although the financial constraints remain, we believe that con-
sidering the multiuse this equipment purchase will provide all
departments in the City, the investment is warranted and prudent.
Potential uses in the future may include video-taping a personnel
appeal in lieu of a costly court reporter, transcription delays,
etc.
The CAP cable television show has continued without even limited
funding for incidental expenses. It is well received in the com-
munity and is a valuable asset to the City and the police depart-
ment. We shall continue to solicit financial support for the
crime prevention project, including grants. In the interim, the
limited funding request appears in order.
Because of the shared use concept, we would recommend as funding
source the Prospective Expenditures account.
Respectfully submitted,
CONCUR:
Steve S. Wisniewski
Gregory T. Meyer Public Safety Director
City Manager
ATTACHMENTS: Letter from CAP Producer Edie Webber
2
October 21, 1986
Honorable Mayor and Members of the
Hermosa Beach City Council: and
Gregory T. Meyer, City Manager
1315 Valley Drive
Hermosa Beach, CA. 90254
Dear Council Members:
On behalf of all the volunteers involved in the "Community Aware-
ness Program", we would like to take this opportunity to
thank you for the attention and consideration the City and Coun-
cil have shown us in the past.
Because of the City's generosity, our program is now in its ninth
month and doing better than any of us had expected. Our viewer-
ship is increasing due to the informative programming and com-
munity interest in crime prevention has improved greatly. The
initial allocation of funding has enabled us to purchase camera
equipment which not only served to broaden our Community Aware-
ness Program, but has also been instrumental in televising City
Council activities. We can now put together programs outside of
Storer Cable's limited studios.
In order to continue our fine program, money is necessary for
additional equipment , show and set expenses. As we discussed
last fiscal year, our needs will not exceed $5,000 for the rest
of this year and 1987. Considering the many hours of volunteer
time, such an amount is miniscule compared to the value of bene-
fits our community receives in crime prevention and other infor-
mation of a community nature.
We come with hat in hand once again and hope you will consider
our request of $5,000. If you have any questions or critiques of
the program, we would be happy to speak with you. You are also
welcome to come to Storer Studio on Monday nights to see the show
live and first hand.
We remain gratefully yours,
,e,,
Edie Webber
Director, Community Awareness Program
October 21, 1986
Honorable Mayor•and Members of the
Hermosa Beach City -Council: and
Gregory T. Meyer, City Manager
1315 Valley Drive
Hermosa Beach, CA. 90254
Dear Council Members:
On behalf of all the volunteers involved in the "Community Aware-
ness Program", we would like to take this opportunity to
thank you for the attention and consideration the City and Coun-
cil have shown us in the past.
Because of the City's generosity, our program is now in its ninth
month and doing better than any of us had expected. Our viewer-
ship is increasing due to the informative programming and com-
munity interest in crime prevention has improved greatly. The
initial allocation of funding has enabled us to purchase camera
equipment which not only served to broaden our Community Aware-
ness Program, but has also been instrumental in televising City
Council activities. We can now put together programs outside of
Storer Cable's limited studios.
In order to continue our fine program, money is necessary for
additional equipment , show and set expenses. As we discussed
last fiscal year, our needs will not exceed $5,000 for the rest
of this year and 1987. Considering the many hours of volunteer
time, such an amount is miniscule compared to the value of bene-
fits our community receives in crime prevention and other infor-
mation of a community nature.
We come with hat in hand once again and hope you will consider
our request of $5,000. If you have any questions or critiques of
the program, we would be happy to speak with you. You are also
welcome to come to Storer Studio on Monday nights to see the show
live and first hand.
We remain gratefully yours,
zadda,_
Edie Webber
Director, Community Awareness Program
1
CITY OF HERMOSA BEACH
PUBLIC NOTICE
SPECIAL MEETING - MARCH 2 , 1987
NOTICE IS HEREBY GIVEN that the City Council of the City of
Hermosa Beach will on Monday, March 2, 1987, hold a Special
Meeting for the purpose of acting on the following items:
1. 1985-86 Financial Audit and Management Letter with
recommendation to accept Audit and implement revisions
to Internal Financial Controls;
2. 1986-87 Mid -Year Budget Review with consideration of
modifying Revenues & Expenditures;
3. 1986-87 Mid -Year Review of Capital Improvement Program;
4. Adopting a Schedule for consideration of the 1987-88 Budget;
5. Consideration of assigning responsibility for 1987 City
Council Goals and developing related tasks.
SAID MEETING TO BE HELD AT 7:30 P.M., in the Council Chamber,
City Hall, 1315 Valley Drive, Hermosa Beach, California.
FOR FURTHER INFORMATION, please contact the Office of the
City Manager 376-6984, ext. 201.
Run display
2-19-87
1
KATHLEEN MIDSTOKKE
City Clerk
Honorable Mayor and Members of the
Hermosa Beach City Council February 25, 1987
City Council Meeting
of March 2, 1987
1985 - 1986 CITY AUDIT
RECOMMENDATION
It is recommended that the City Council accept the 1985 - 1986
Financial Audit, dated September 22, 1986 as prepared by the out-
side auditor, Grant Thornton.
BACKGROUND
The role of the outside auditor is a time honored one in city
government and, in Hermosa Beach it has been our practice to an-
nually audit the financial statements and encourage the Auditor
to submit a Management Letter.
Tonight you are being asked to accept the report from your out-
side auditor, GRANT THORNTON. They have examined our financial
records and transactions for the period July 1, 1985 through June
30, 1986. As a result of that examination they have issued their
formal opinion and have further, as Council policy requires, sub-
mitted a management letter to you regarding internal controls,
suggestions for improvements, etc.
ANALYSIS
The audit found that our records and processes were being con-
ducted appropriately and generally in conformity with good
governmental accounting practices. No improprieties or embezzle-
ments were discovered. And throughout the process city staff was
cooperative and facilitative.
And so the financial statements are submitted to you with the
recommendation that you, by motion, formally accept them.
Mr. Lee Strom of Grant Thornton was responsible for the conduct
of this audit. He is here and able to answer any technical ques-
tions you might have regarding either the financial statements or
the management letter.
Additionally, I would like to take a few moments during the meet-
ing to review with you some of the financial numbers from the
Audit. The attached charts will be used in that presentation on
March 2.
Gr or T. Meyer'"
Ci■y Manager
GTM/ld
Attachments
cc Executive Staff
All Employee Groups
la
DETAILED BREAKDOWN OF
JUNE 30, 1986 FUND BALANCE
FUND BALANCE, JULY 1, 1985
E STIMATED EXCESS REVENUES
OVER EXPENDITURES
TRANSFER TO INSURANCE FUND
EXCESS REVENUE
E XPENDITURES UNDER BUDGET
N ET TRANSFER
FUND BALANCE AT END OF YEAR
$ 21,235
$ 91,363
{ $ 100,000 )
$ 467,333
$ 186,173
$ 186,720
$ 852,824
SIGNIFICANT
1985 - 1986 EXPENSES
LESS THAN BUDGETED
RETIREMENT
GEN. APPROP
PROS. EXPEND
POLICE
$ 59,551
$ 37,124
$ 61,458
$ 30,190
SIGNIFICANT
1985-1986 REVENUES
MORE THAN BUDGETED
PRIMARY CONTRIBUTING FACTORS
GENERAL FUND 467,333
P ROPERTY TAXES
U TILITY USERS TAX
S UPPLEMENTAL ROLL
S ALES TAX ADJUST
B UILDING PERMITS
P LUMBING PERMITS
FINES -FORFEITURES
O THER
MOTOR VEHICLE FEES
CIGARETTE TAX
SUPPLEMENTAL SUBVENT
PLAN CHECK
RESIDENTIAL INSP
INTEREST
$ 28,749
$ 42,800
$ 34,865
$ 85,000
$ 53,497
$ 11,017
$ 9,970
$ 30,691
$ 72,027
$ 6,249
$ 7,868
$ 51,345
$ 5,345
$ 27,910
PARKING FUND $ 325,496
COURT FINES
METERS
VPD LEASE
$ 286,829
9,499
$ 21,004
OTHER $ 8,164
PARKING FUND ANALYSIS
1985 - '86 BUDGET
REVENUES MINUS
EXPENSES WERE
TRANSFER IN
MORE THAN BUDGET
TRANSFERRED TO
GENERAL FUND
$ 307,985
$ 5,254
$ 313,239
COURT FINES
VPD LEASE
METERS
- PARKING $ 286,829
$ 21,004
$ 9,449
OTHER VARIANCES
IN ACCOUNTS
$ 8,164
TOTAL $ 325,496
EXPENDITURES OVER BUDGET ( $6,353 )
TRANSFER IN ($5,254)
OTHER ADJUSTMENTS ( $650 )
RESULTANT $ 313,239
Honorable Mayor and Members of
the Hermosa Beach City Council
January 8, 1987
City Council Meeting of
March 2, 1987
1985-86 REPORT ON INTERNAL ACCOUNTING
CONTROL (MANAGEMENT LETTER)
GRANT THORNTON
RECOMMENDATION
It is recommended that the City Council accept the staff
recommendation relating to the Report on Internal Accounting
Control submitted by Grant Thornton for fiscal year 1985-86.
Staff recommends the following:
FIXED ASSETS
Funds have been provided in the 1986-87 Finance Department budget
for appraisal of fixed assets and software to allow integration
of the information with the financial management system. The RFP
for fixed assets is in the planning stage. It is intended that
the contracting vendor will work closely with the City's auditors
to guarantee satisfaction with the resultant product, thereby
eliminating this qualification on the City's financial statement.
SEGREGATION OF DUTIES
Items (1) and (2) can be successfuly implemented at this time
without waiting for an opportunity via a newly hired employee.
GENERAL LONG TERM DEBT
Accounts have been set up and can be utilized to implement this
recommendation.
RECEIVABLES
This one error was an oversight. A review process has been
established to prevent reoccurrence.
PREPAID INSURANCE
This account has been established and will be utilized when
appropriate.
OPERATING TRANSFERS
A method to differentiate between transfers has been developed
and discussed with the auditors. It is recommended that this
method of memo notation and quarterly reconciliation of interfund
transfers be implemented.
1
111
DEBT SERVICE AND CAPITAL PROJECTS FUNDS
It is recommended that, consistent with the audit recommendation,
these funds be eliminated and amounts transferred to the General
Fund, with designations therein for these purposes.
INTERNAL SERVICE FUND
All insurance accounts have been budgeted in the Internal Service
Fund for 1986-87. The accountant is in the process of
establishing service charges to the departments for insurance to
enable the fund to function in a manner consistent with the fund
type.
ELECTRONIC DATA PROCESSING
The General Services Director has indicated that these items have
been discussed at length with the audit staff and all will be
addressed within this calendar year.
Concur:
Gr=gor T. M yer
Ci'y Mana:er
-'2 -
Viki Copeland
Finance Administrator
Honorable Mayor and Members of the
Hermosa Beach City Council
February 26, 1987
Special, Adjourned
City Council Meeting of
March 2, 1987
1986 - 1987 MID -YEAR BUDGET REVIEW
RECOMMENDATIONS:
It is recommended that the City Council:
1. Receive and File this report;
2. Adopt the attached revised Recap of Expenditures;
3. Adopt the attached revised Budget Summary By Fund;
4. Adopt the attached revised Revenue Estimates By Fund
5. Adopt a City Council instruction that, for the 1987 - 1988
budget the City Manager should seek to prepare a budget
that includes an amount equal to 3% of the recommended
General Fund operating budget in a Contingency Fund.
BACKGROUND
This is the sixth formal mid -year budget review for the City of
Hermosa Beach. It's purpose is to look at the overall budget
after one-half of the fiscal year and make recommendations for
necessary modifications.
Those departments which have expended more than 50% in the first
half of the fiscal year are:
PERCENTAGE DEPARTMENT PERCENTAGE DEPARTMENT
65.9 Insurance 58.9 Fire
Other than for the Fire and Insurance Departments, it appears
that all other departments will stay within budget for the
remainder of the fiscal year. The recommended adjustments are:
Fire + $ 101,000 Insurance + $ 43,082
1
r
A}ALYSIS
At the mid -point in the fiscal year we have spent 46.87 of the
budget allocations and received 52.7% of the anticipated General
Fund revenue. At this point last year, expenditures were 487 and
income was 57.770.
As reported in the City Treasurer's Report for December 31, 1986,
the General Fund balance was $ 1,201,284; last year at that same
time the balance was S 1,074,748 and the year prior to that there
was a deficit of S 568,143 at the mid -year. Clearly then the
tide has been turned and we are edging into financial solvency.
This is a cumulative effect from prudent management, fiscal
constraints and aggressively seeking appropriate revenues by
recovering costs reasonably borne for services provided.
The Budget Summary By Fund, as currently enacted anticipated a
June 30, 1987 all Fund balance of $ $ 2,309,272. We now
anticipate that the ending balance will be $ 3,194,611. Overall
this is a significant improvement in our financial position. It
does not, however, mean that we are "out of the woods". By way
of reference, the actual year end all Fund balance amount for
June 30, 1978 was $ 4,419,652.
In looking specifically at the General Fund, it would be prudent
to have a contingency Fund of at least 37 of the operating
budget. Such a determination is a matter of legislative policy.
In recent years we have had no Contingency Fund. However, this
is a common practice among the South Bay cities.
Were that done for this fiscal year it would amount to
approximately $ 230,000. Taking into account the revenue and
expenditure estimates contained in this report and the several
appropriation recommendations, the remaining unappropriated
monies as of June 30, 1987 is estimated to be $ 73,038. What it
will actually be is of course dependent on revenues and
expenditures for the remainder of the year.
REVENUES
The attached revision to the Revenues indicates a net increase of
$ 264,797. As can be seen from the listing this is caused by a
number of adjustments. Predominantly it is the result of a surge
in building/development related income. It is not anticipated
that this will be re -occurring. On the other hand, sales tax is
estimated to be less than we originally estimated.
EXPENDITURES
Expenditures are generally within guidelines. The operating
departments are doing a good job. However, some adjustments are
necessary:
1. Fire Department salaries will be $ 101,000 more
than budget due to overtime, FLSA etc.;
2. Prospective Expenditure monies spent during the
first six months aggregated $ 87,164. Only $ 12,836
remains. It would appear prudent that an additional
$ 40,000 be allocated;
3. Monies were not allocated for the current year ATSF
property taxes; the bills have been received so
$ 12,000 is required;
4. Our Unemployment Insurance costs are a function of
payroll costs. This is our first year under this
formula; in the first half of the year almost all
of the budget monies have been expended. An add-
itional $ 37,824 is required;
5. We are now required to pay Medicare costs on new
hires only. This is a part of the federal govern-
ments way of "shedding" their financial burden. It
was difficult to estimate this cost; we now require
an additional $ 5,258 to cover the remainder of the
fiscal year;
6. As a matter of fiscal prudence it would be good for
us to reduce our debts that involve interest payments.
Since 1980 this sort of debt has been growing since
we lacked the financial wherewithal to pay cash for
our various capital needs. We can now begin to reverse
that process. In examining these debts it appears
that the first of these ought to be paying off the
mortgage on the Bard Street property acquisition. We
owe $ 96,893; paying it off would preclude about
$ 40,000 in interest payments; it can be done without
any penalty payments. It is therefore recommended.
7. Rejoining AWWS seems prudent, see the attached
memorandum from the Director of Public Safety. We
can afford ($ 8,750) to do so and it will be beneficial
to dealing with criminal violators.
8. Earlier in the fiscal year the City Council, as a matter
of policy, instructed us to examine how we might return
to a formal program of crime prevention. We have done
so, see the attached memorandum from Public Safety
Director Wisniewski. The cost is minimal ($ 5,000); it
is recommended.
FUNDS
Several adjustments are needed. Specifically:
1. On the basis that UUT'income is greater than originally
anticipated, increase the sewer allocation, transferring
from General to the Sewer Fund $ 99,005. Our sewer
needs are immense; this will be an assist toward cap-
italizing replacement as already prioritized;
2. $ 44,833 needs to be transfered from the General Fund
to the Transit Fund to render the balance consistent
with the audited Prop A balance.
3. The Auditors have recommended elimination of the Debt
Service Fund since payments are not being made from
the Fund. Staff concurs. It is recommended that a
transfer from Debt Service to General Fund in the
amount of $ 65,005 be made and then designate that
amount as a Reserve for that purpose;
4. The Auditors have recommended elimination of the Capital
Improvement Fund. Staff concurrs. In 1979 the Capital
Improvement Funds had a combined balance of $ 577,532.
It is therefore recommended that $ 522,706 be so
designated;
5. The Asset Replacement concept was formally adopted as a
part of the MSI report whereby the Council imposed
"costs reasonably borne" for various services. As a
part of that program we are obligated to set aside funds
for asset replacement. To date we've only reserved
$ 20,000. It is recommended that an additional
$ 100,000 be so designated;
6. Monies need to be formally set aside for the acquisition
of surplus school property at the former Prospect School
site. As envisioned by staff $ 250,000 can be obtained
as follows: $ 100,000 from the already designated Open
Space restricted monies (Oil fee income), $ 50,000 from
the Park & Recreation Facilities Fund and $ 100,000 from
the General Fund. While the acquisition is not yet
agreed to by the seller, it would be prudent for us to
encumber funds to match what we have offered. It is
therefore recommended.
7. Increase the Insurance Fund reserve by $ 150,000.
This is necessary to have an adequate Retention for
our Liability, Property and Workers' Compensation
policies.
8. Transfer from the General Fund to eliminate the deficit
in the Community Development Block Grant Fund
($ 21,314). In a prior year a transfer from the General
Revenue Sharing Fund for a CDBG project was not made,
thereby creating a deficit.
REMAINDER OF THE BUDGET YEAR
The focus will, of course, be to ensure that the authorized tasks
and projects are completed within the adopted budget. In
addition a priority will be given to the following:
1. Completion of all authorized Capital Improvement
Projects;
- 4
2. Obtainng back our ,Building Permit authority from the
California Coastal Commission;
3. Analyzing the pros and cons of a City Charter; and
4. Moving ahead with the City's hydrocarbon recovery
program.
CONCLUS ION
Preparation of this document was possible only because of the
extensive efforts by all members of the management team. I am
most appreciative of those efforts. Through their diligence we
have prudently expended monies, met the Council's adopted
objectives for the first half of the year and have now carefully
commenced to realize a fiscal solvency not seen here in many a
year.
A a (
Greory Meyer
Ci Manager
GTM/ld
Attachments
cc All Department Heads
5
GENERAL FUND - DEPARTMENT
CITY COUNCIL
CITY CLERK/RECORDS
ELECTIONS
LEGAL - ATTORNEY
LEGAL - PROSECUTOR
CITY TREASURER
CITY MANAGER
FINANCE/ADMINISTRATION
PERSONNEL
CABLE TV
DATA PROCESSING
BUSINESS LICENSE
GENERAL APPROPRIATIONS
EMPLOYEE HEALTH BENEFITS
RETIREMENT
PROSPECTIVE EXPENDITURES
ADVERTISING
POLICE
FIRE
ANIMAL CONTROL
CIVIL DEFENSE
STREET MAINTENANCE
PLANNING
PLANNING COMMISSION
BUILDING
PUBLIC WORKS ADMINISTRATION
BOARD OF APPEALS
BUILDING MAINTENANCE
EQUIPMENT SERVICE
COMMUNITY RESOURCES
COMMUNITY RESOURCES COMMISSION
CHILD ABUSE
PARKS
CAPITAL IMPROVEMENT PROJECTS
TOTAL
RECAP OF EXPENDITURES
1986 - 87 MIDYEAR BUDGET REVIEW
EXPENDITURES
56,083
41,205
11,200
197,050
27,368
28,647
112,831
213,554
84,803
3,418
262,039
68,582
30,226
393,646
975,962
52,836
8,001
2,283,107
1,011,909
77,448
10,953
220,840
120,327
5,980
280,411
204,767
285
278,877
83,031
217,601
190
23,750
195,650
95,820
7,678,397
SPECIAL FUND - DEPARTMENT
STREET LIGHTING FUND
STREET LIGHTING DIVISION
CAPITAL IMPROVEMENT PROJECTS
PARKING FUND
VEHICLE PARKING DISTRICT
PARKING ENFORCEMENT
CAPITAL IMPROVEMENT PROJECTS
COMM CTR. PKG STRUCTURE
STATE GAS TAX FUND
MEDIANS
TRAFFIC SAFETY
CAPITAL IMPROVEMENT PROJECTS
PARKS RECREATION FACILITY TAX FUND
CAPITAL IMPROVEMENT PROJECTS
GENERAL REVENUE SHARING
CAPITAL IMPROVEMENT PROJECTS
PROPOSITION A FUND
GRANT FUND
CAPITAL IMPROVEMENT PROJECTS
CROSSING GUARD DISTRICT
SEWER FUND
SEWER/STORM DRAIN
CAPITAL IMPROVEMENT PROJECTS
INSURANCE FUND
CITY INSURANCE
WORKER'S COMPENSATION
UNEMPLOYMENT INSURANCE
MEDICARE
EXPENDITURES
379,565
236,500
321,464
750,161
35,063
10,000
133,832
89,969
130,264
206,534
43,302
201,885
636,405
71,370
105,615
737,460
221,500
161,938
74,574
5,258
OTHER FUND TOTAL 4,552,659
GRAND TOTAL 12,231,056
2 (2)
CITY OF HERMOSA BEACH
BUDGET SUMMARY BY FUND
1986 - 87 MIDYEAR BUDGET REVIEW
ESTIMATED ESTIMATED PROPOSED TRANSFER ESTIMATED
FUND BALANCE REVENUE EXPENDITURES IN - (OUT) FUND BALANCE
JUNE 30, 1986 1986-1987 1986-1987 JUNE 30, 1987
001 GENERAL FUND 852,824 7,441,578 7,678,397 1,830,814
(1,413,985) 1,032,834 *
105 LIGHTING 1,309,873 473,606 616,065 (147,995) 1,019,419
110 PARKING FUND -0- 2,084,904 1,116,688 (968,216) -0-
115 STATE GAS TAX 462,118 350,814 354,065 100,351
(189,642) 369,576
120 COUNTY GAS TAX 47,611 90,288 (88,588) 49,311
* Fund balance includes Designation for:
Asset Replacement
Capital Improvements
Parking Facility
Unappropriated
120,000
522,706
5,254
73,038
Open Space Acquisition/Maintenance
Prospect Park Acquisition
Debt Service
Affordable Housing
$100,000
100,000
65,005
46,831
73,038
2 (3)
1
ESTIMATED ESTIMATED PROPOSED TRANSFER ESTIMATED
FUND BALANCE REVENUE EXPENDITURES IN - (OUT) FUND BALANCE
JUNE 30, 1986 1986-1987 1986-1987 JUNE 30, 1987
125 PARK RECREATION FACILITIES 210,770 198,466 206,534 8,976
(80,000) 131,678*
130 REVENUE SHARING 97,271 13,907 43,302 8,290 76,166
140 CDBG (29,217) 7,903 21,314 -0-
145 PROPOSITION A FUND 59,863 201,980 201,885 44,833 104,791
150 GRANT FUND 3,353 568,840 636,405 84,951 3,473
(17,266)
155 CROSSING GUARD (10,098) 76,595 71,370 (4,250) (9,123)
160 SEWER FUND 314,435 66,089 843,075 664,005 166,486
(34,968)
205 DEBT SERVICE 169,610 3,031 (172,641) -0-
305 CAPITAL IMPROVEMENT 254,700 4,553 (259,253) -0-
705 INSURANCE FUND 100,000 463,270 613,270 250,000**
TOTAL
3,843,113 11,582.,_554,
* Fund balance includes designation for Prospect Park $50,000
** Fund balance includes reserve for self-insured retention $250,000
12,231,056 3,194,611
L.
L
l.,
`..
L
�b
/
2
•
Honorable_May_or_and Members_oa_the
IB
1
;
5
Hermosa Beach City Council
February 26,1987
.
6 _Re; ReviaecLRemenlles,
Midyear Review
Fnr rhe Meeting
revisions to the estimated revenues.
of
March 2, 1987
0
8
Below are the recommended
9
1
13
0
11
ORIGINAL
MIDYEAR
INCREASE
;;
11
ESTIMATE
REVISION
(DECREASE)
15
IB
11
I'
GENERAL FUND
18
19
70
31
Taxes
3101
3102
Current Year Secured
Current Yeer Unsecured
$1,827,503.00
$130_,.053 00
$1,827,503.0022
73
14
3103
Prior Year Collections
$117,308.00
$110,053_05
$117,308.00
"
3104
Interest/Penalties
$5,865.00
$5,865.00�27
•
20
3105
Other_Property Taxes
$300 00
28
3107
Transfer Tax
300_-00
21
3108
Sales Tax
$67,186.00
$1,735,500.00
$101,715.00
$34,529.00
20
1
3110
Cable TV Franchise
$62,300.-00
$1,627,425.00
$70,00D-00
($108,075.00)
II 00
31
31
25
78
3111
3112
$25,000.00
$25,000.00
Electric Franchise
Gas Franchise
$
34
27
3113
$51,000.00
$51,000.00
35
Refuse_Fianchise
$90.00.0_00
36
28
29
3114
3115
Transient Occupancy
Business License
$41,863.00
$90000 00
$49,571.00
$7,708.00
30
'°
$362,400.00
$362,400.00
39
3120
Utility User Tax
$927,510 00
$1,026,515.00
'°
$.99,005.00
.1
32Licenses
and 'Permits
33
3202
nog Licenses
$15,000-00
$]1,5.00_-00
43
'.
50
336 53204
3203
Bicycle Licenses
Building Permits
$200.00
$200.00
($1,50.0_.-00
8
3205
Flectric
$160,000.00
$250,000.00
$90,000.00
/7
Permits
Plumbing
$38,000-00
$5D,000 00
$12,000_01
'8
37
3206
J8
3207
Permits
Occupancy Permits
$30,000.00
$42,000.00
$12,000.00
8
39
$3,000.00
$3,000.00
51
3209
Garage_Sales
$250._.00
"
53
40
3210
Bingo Permits
$200.00
$100_00
($15.0_ 00)
42
3211
3212
Banner Permits$500.00
$200.00
$5
54
55
Animal__/Enwl Permits
100.0D
$0 00
x$100_-00)
;;
43
3213
Animal Redemption Fee
$4,000.00
$3,500.00
($500.00)
58
'S
Fines _& Forfeitures
60
�`
3301
3303
Vehicle Code Violations
$63,930.00
$70,000.00
$6,070.00
62
i8
Court Fines/Police Dept
$40,000.00
$47,000.00
$7,000.00
BS
BI
49
65
50
CB
SI
fit
BB
57
69
53
717
]
35
13
36
]a
2(4)
75 1
6
J
•
0
u•
•
■
r
'6
2
3
a
5
1
.
3401
Use
Use of Money & Property
Interest Income
$25,000.00
$27,488.00
$2,488.00
3402
3403
3404
Rents & Concessions
Pier Revenue
Comm Ctr Leases
$57000.00
$9,960.00
$55,000.0055,000.00
$6,400.00
$9,960.00
$1,400.00
J5
3406
3411
Comm Ctr Rentals
Comm Ctr Theatre
Other Facilities
$30,000.00
$17,000.00
$40,000.0062,000.00
$40,000.00
$17,000.00
$10,000.00
$22,000.00
3412
3414
3415
Tennis Courts
Prop A Conversion
Oil Platform Fee
$000.00
$0.00
$0.00
$10,000.00
$0.00
$0.00
$4,000.00
3416
3417
01F oyarties
Oil Bidders Fee
$20,000.00
$100,000.00
$400.00
$
$20,000.00
$100,000.00
$400.00
$496,269.00
3504
3505
Intergovernmental7State
In Lieu Off Highway
In Lieu Motor Vehicle496,269.00
3507
3508
3509
Hi—hwa
g y Sweeping p g
Mandated Costs
Homeowner Prop Tx Relief60,000.00
$6,000.00
$32,684.00
$6,000.00
$32,684.00
$60,000.00
;
3510
3511
3514
Post
Stc-Svc Off Training
Cigarette Tax
$29,246.00
$7,000.00
$53,496.00
$29,246.00
$7,000.00
$53,496.00
'
3
3515
3516
Suppenta1 Subvention
Scag Transit Plan
$37,881.00
$0.00
$37,881.00
$0.00
3801
3802
Current Service Charges
Residential Inspection
Sign Review
Environmental Impact
Board of Appeals
Zone Variance Review
•_.._
$12,000.00
$1,200.00
$11,500.00
$1,325.00
$1,240.00
$
$2,700.00$5,640.00
$1,750.00
$30.00
$12,160.00
$120,000.00
$800.00
$10,000.00
$100.00
A1,750.00
000.00
$1,000.00
$15,000.00
$700.00
$11,960.00
$1,550.00
$5,640.00
$1,250.00
$1,800.00
$10,000.00
$150,000.00
$800.00
$12,000.00
$100.00
$1,750.00
$14,000.00
$28,000.00
$2 100.00
$3,000.00
($500.00)
$400
$225.00
$1,130.00
6
'
,
+
3803
3806
3808
3509
3810
3811
Tentative Ma Review
Map
Final Map Review
Zone Change Review
Con itional Use Review
Plan Check Fees
Planning/Zoning Appeal
$2,940.00
($500.00)
($1,800.00
,
,
36
3813
3814
($2,160.00)
$30,000.00
$2,000.00
$2,000.00
$11,400.00
$1,100.00
;
6
6
6
5
6
3813
3816
3817
Public Works Services
Curb/Sidewalk Repair
Special Curb Marking
3818
3819
3820
Police Services12
Jail Services$16,600.00
Trusty Admin Fee
3821
3823
3824
Fingerprint Service
Special Event Security
Vehicle Inspection Fees
$2,500.00
$13,125.00
$1,500.00
$50.00
$0.00
$4,552.00
$2,500.00
$13,125.00
$2,000.00
$50.00
$0.00
$5,007.00
$500.00
$455.00
6
6
6
6
6
6
3875
3826
3827
Public Notice Posting
Rec Programs/Classes
Library Grounds Maint
3831
3834
3835
Street Cut Inspection
Encroachment Permit
Weed & Lot Cleaning
$45,000.00
$1,500.00
$1,000.00
$6,500.00
$700.00
$40,000.00
$2,000.00
$1,000.00
$7,000.00
$700.00
($5 )
$500.00
$500.00
;
,
3836
3837
Fumigation Inspect Fee
Returned Check Charge
1
v
2
6
Pg -3
3838 Sale of Map/Publications
3839 Photocopy -Charges
3840 Ambulance Transport
3841 Police Towing
3857 Park-ing-P-lan-Application
7
$600.00 $600.00
$900-x-00 $900:00
$6,500.00 $6,500.00
$30,000.00 $26,000.00
$0,-00 $1,090-00
Other Revenue
3901 Sale-of-ReallPers-P-roperty $-20,225.00 $-10;000.-00
3902 Refunds/Reimb Prev Yr $500.00 $1,734.00
3903 Contributions Non Govt1,000.00
3904 General -Miscellaneous $1;000.00 *25,5-73.00
FUND TOTAL $7,176,781.00
($4,000.00)
$1,090.00
$10,2250)
$1,234.00
$300.00
$24-S73.00
$7,441,578.00 $264,797.00
19
20
21
22
23
24
25
28
29
30
31
32
33
35
36
37
98
40
,1
22
43
44
45
46
47
43
43
55
51
LIGHTING DISTRICT FUND
52
53
58
55
56
57
Taxe
3101 Current Year Secured
3103 Prior Year Collections
3104 Interest-/Pena-1.-t-ies
Use of Money & Property
340-1 Interest-3ncomc
Other Revenue
1904 Ceneral-Mi-secllaneouo
FUND TOTAL
$400,000.00
$25,000.00
$1,27-4,8,00
-$64--000 :0
$400,000.00
$25,000.00
$490,748.00
$44,856,00
$2,000,00
$473,606.00
($19;142.00)
$2,000:00
($17,142.00)
PARKING FUND
Bines-& orf-e4-ture
3302 Court Fines/Parking
se -o€ -Money & Proper-
3401
roper3401 Interest Income
3407 Parking Lot Rental
340-9 Lot B
3413 VPD Lease
$1,100,000.00
$1,300,000.00 $200,000.00
urrent--Servo-Ec Charge
$70,000.00
$31,104.00
**22;000.00
$49,500.00
$18,000.00
$31,104.00
*I-5;000:00
$49,500.00
($52,000.00)
($+000.00 )
3842 Parking Meters
3843 Parking Permits: Annual
3864 Daily -Parking Permito
3845 VPD Lot Permits/Daily
3846 VPD Lot Permits/Monthly
3847 Validation -Stamps
3848 Driveway Permits
3849 Guests Permits
3850 Contractor's Pcrmi
3851 Key Cards
UND-TO-TAL
$500,000.00 $500,000.00
$150,000.00 $150,000.00
$7;000.-00 $3;500.-00
$1,400.00 $3,000.00
$6,000.00 $6,000.00
$2;000.00 ;6,000.-00
$500.00 $800.00
$1,000.00 $1,400.00
$200:00 $500.00
($3,500700)
$1,600.00
$4;000.700-
$300.00
$400.00
$30000
$100.00 $100.00
$1,940,804,00 $2,0-84,904,00 $1-44 00:-00
(
2
3
5
7
8
10
12
1.
I5
16
Pg 4
STATE -GAS -TAX -FUND
Use of Money & Property
3401— Interest -Income
Intergovernmental/State
3501 Section -2106 Allocation
3502 Section 2107 Allocation
3503 Section 2107.5 Allocation
3519 Section -21-26-08300)
3521 Outer Continental Shelf
FUND TOTAL
COUNTY GAS TAX FUND
*26;000.00
*54,147.00
$166,069.00
$4,000.00
$45,655.00
$64,029.00
*459,900,00
$16 -7914 -TDO ($97086-..00)
$54-714-770
$166,069.00
$4,000.00
$4x655:00
$64,029.00
$350,8-1470
($97086:00)
Use of Money & Property
3401 Interest Income
$3,600.00
$1,700.00
($1,900.00)
25
20
Intergovernmental/County•
360-1 Counter--Aid--to Cities
588,00
29
36
FUND TOTAL
$88;588:00
$92,188.00
$8
$90,288.00
($1,900.00)
'
PARK & RECTN FACTY FUND
T
.
35
36
-axes
3116 Park Rec Facility Tax
Use Money
$30,000.00
$160,000.00
$130,000.00
36
39
-of
3401 Interest• Income -
Other
•---
•
$17,000.00
$8,466.00
($8,534.00)
.6
41
42
-Revenue
3910 Park,Recreation in Lieu
FUND TOTAT
$98,000.00
$145,000.00
$30,000.0 0
$-1-98,466.00
($68,000.00)
,3
"'
.5
REVENUE SHARING FUND
$-5-35-4-6600
/6
a7
63
Use of Money & Property
3401 Interest Income
$0.00
$2,024.00
$2,024.00
56
51
Intergovernment/Federal
3702 Revenue Sharing
$18,641.00
•
$11,883.00
($6,758.00)
"
53
5.
FUND TOTAL
$18,641.00
$13,907.00
($4,734.00)
55
56
57
2
]6 I
57
35
9Y
46
AI
.!
.6
♦,
45
57
5'
5
51
51
51
5'
6i
6
6.
6.
6'
61
6.
61
7
7.
71
10
13
15
16
17
16
19
23
21
22
23
21
25
26
27
28
29
36
31
32
33
31
41
12
43
44
15
46
47
16
/9
50
51
52
53
54
55
56
57
Pg 5
COMM DEV BLOCK GRT FUND
3706
3707
Intergovt/Federal
Runaway Shelter 84C259
CDBG Admin 84C261
$0.00
$1,370.00
$0.00
$1,370.00
3708
3709
3710
Sewer—Study—JB263
St Drain Upgrade 84C260
Sewer Rehab 84C264/JB26
$0:-00
$0.00
$0.00
$0:00
$0.00
$0.00
3902
Other Revenue
Refunds/Reim Prev Year
$6,533.00
$6,533.00
FUND TOTAL
$7,903.00
$7,903.00
TRANSIT FUND
3117
Taxes
Proposition A Transit
$188,785.00
$188,785.00
3118
3119
State-Transit—Assist-an -
Local Transit Funds
$0.00-
$0.00
$0.00
$0.00
3401
Use—of—Mon
Interest Income
$20,000.00
$3,000.00 ($17,000.00)
3852
3853
Current—Service—eh
Fares ESEA
Fares Beach Shuttle
•
$3,400.00
$150.00
$3,400.00
$0.00 ($150.00)
3854
3855
Fare
Bus Passes .. -
$-3700�00
$3,295.00
$218;630.00
$37500-.-00-----$-5-00700
$3,295.00
GRANT FUND
FUND—T0TA
$2017980:00 (0.6765-0T00)
3401
Use of Money & Property
Interest Income
$0.00
$120.00 $120.00
3513
3517
Intergovernmental/State
Roberti Zberg
$8,290.00
$8,290.00
3518
3520
Office—of—Traffic—Safety
Hydrant Upgrade/76-1902
Roberti Zberg 19-162
$557000.00
$0.00
$8,976.00
0-5,000:00
$0.00
$8,976.00
3301
Intergovernment/Federal
Feder
Hazard Elimination Sfty
VT UTI 'PArtM *
3705
$49-674-54700
$0.00
.. r ,.,.
$496,454700
$0.00
wrs
5
6
F
I!
21
21
2;
21
24
27
29
26
31
31
3;
3,1
36
37
36
36
40
41
1<
55
56
57
58
59
60
61
62
63
64
65
66
61
65
Co
21
71
73
2c
75
21
6
'
. Pg 6
CROSSING GUARD FUND
6
3101
3103
Taxes
Current Year Secured
Prior
$73,495.00
$73,495.00
r
a
9
3104
-Year -Collect -ions
Interest/Penalties
Use
$3,000.-00
$100.00
$37000.00
$100.00
3401
-of-Money -& -Property
Interest Income
FUND
$0.00
$0.00
$767595:00
Id
IISI
I
SEWER FUND
TOTAL
$76,595.00
°
3401
Use of Money & Property
Interest Income
$2,600.00
$10,000.00
$7,400.00
I°
3828
3829
Current Service Charges
Sewer Connection Fee
Sewer -Demoii-ti-on-Fee
$20,000.00
$25,000.00
$5,000.00
91
3832
Sewer Lateral Installtn
Other-Revenuc
$820.00
$7,889.00
$1,200.00
$7,889.00
$380.00
z6
za
3906
In Lieu Sewer Fee
FUND -TOTAL
$ 25 385.00
$22,000.00
($3,385.00)
DEBT SERVICE FUND
$5676947-0
$667089:00
$995:00
fz
3401
Use of Money & Property
Interest Income
.._
$18,000.00
$3,031.00
($14,969.00)
;
15
7e
FUND TOTAL
$18,000.00
$3,031.00
($14,969.00)
•
;
.
19
CAPTL IMPRVMT FUND
Use & Property
��
42
3401
-of -Money
Interest Income
FUND TOTAL
$12,000.00
$4,553.00
$4755370
($7,447.00)
43
1.
15
x127000:00
(177447:00)
I6
1!
IB
6
19
50
51
GRAND TO-TALS
$11,58-275540
6
fi
6
51
51
$11,1827604:00
$3997-950.00
6
56
57
,
1'
February 13, 1987
Mayor and Members City Council Meeting
of the City Council of March 2,1987.
REQUEST TO AUTHORIZE PARTICIPATION IN THE AUTOMATED WANTS AND WARRANTS
SYSTEM AND TO APPROVE AND APPROPRIATE FUNDING AT MID -YEAR
RECCM END7 TION:
It is recarmended that City Council:
1. Authorize participation in the Automated Wants and Warrants System(AWWS)
2. Appropriate $8,750. to fund the costs of joining AWWS.
BACKGROUND:
Because of fiscal constraints, the Hermosa Beach Police Department withdrew frau
participation in the AWWS program in July of 1986.
Because of non -participation, there are currently 5,200+ outstanding warrants
being held by the Department. Without participation in the program, we are not
able to apprehend those individuals who do not reside in Hermosa Beach and thus
are losing the revenues which could be derived frau those warrants.
ANALYSIS:
The Automated Wants and Warrants System(AWWS) is a program which enables
participating agencies the ability to enter all of their outstanding warrants
into an area wide computerized system. When an individual is stopped by another
agency, a check is made and if there are any outstanding warrants, the officer
is able to make the arrest and collect the fine or bail. That revenue is then
sent to the agency which issued the warrant.
Since Hermosa Beach stopped participation in the program, non of our warrants
are in the system, but we serve warrants for other jurisdictions which are
participating. This means that the only Hermosa Beach warrants served are those -
which we are able to serve ourselves. Most of the individuals named in the
warrants are frau other jurisdictions or can't be located for various reasons.
If all of our warrants were in the system, the success factor would probably pay
for our participation in a very short time.
We currently have approximately 5,000 warrants to be entered into the system.
The cost for entry per warrant is currently $1.65. This would be a total of
$8,250. for warrant entry. As we sort through the various warrants to be
entered, we will probably find several that can be deleted which would lower
this cost.
2 I7
The program has an additional charge of $14.70 per year per sworn officer. We
currently have 34 sworn officers so this would total $499.80.
The total cost of re-entry into the program would not exceed $8,750. If we con-
sidered that each of the outstanding warrants were worth only $20.00 each it is
easy to see that we would recover our investment rapidly.
Steve S. Wisniewski
Director of Public Safety
CONCUR:
GregT. Meye1 , City Manager
FISCAL IMPACT NOTED:
Vicki Copeland, Finance Administrator
February 17, 1987
Mayor and Members City Council Meeting
of the City Council of March 2, 1987
REQUEST FOR EXTRA -BUDGETARY APPROPRIATION FOR CRIME PREVENTION AND
COMMUNITY AWARENESS PROGRAMS
RECOMMENDATION:
It is recommended that City Council appropriate $5,000. to fund Crime Prevention
and Community Awareness programs in the City.
BACKGROUND:
The Crime Prevention and Carmunity Awareness programs offered by the Department
are being well received in the City. We are experiencing a higher demand for
the various services and programs as more and more people find out about them.
In order to continue providing the services to the cammunity, we need to have
additional funding for purchase of necessary supplies and equipment.
ANALYSIS:
Officer Thompson of the Hermosa Beach Police Department has been assigned the
task of Crime Prevention in addition to his regular duties. He is responsible
for the various programs and services that we provide the City.
Scxne of those programs are:
Neighborhood Watch
Various Safety programs in the Schools
D.A.R.E. program(Drug Abuse Resistance Education)
Herne Security Checks
The Weekly Community Awareness program on channel 10
In order to continue these programs and include more of our population we are
asking for additional funding in order to purchase signs, stickers, hand out
materials, portable camera, recorder and lights.
CONCUR:
egry er, City ger
FISCAL IMPACT NOTE
tL
Vicki Co and, Finance Administrator
ctful
41111111.
Steve . ^isniewski
'tted,
Director of Public Safety
2 18
Honorable Mayor and Members of
the Hermosa Beach City Council
February 19, 1987
Special Meeting of
March 2, 1987
STATUS OF CAPITAL IMPROVEMENT PROJECTS
QUARTERLY REPORT -JANUARY, FEBRUARY AND MARCH
Recommendation:
It is recommended that City Council receive and file this report.
Background:
Listed below is the status of all FY 86-87 approved CIP's.
Street and Safety Improvements
CIP 85-102 FAU, Widen Highland Ave., from Longfellow to
35th Street
Status: Proposals for design due January 27, 1987
CIP 85-120 City-wide, Traffic Study
Status Project not approved by the Office of Traffic
Safety -will try again next year.
CIP 85-130 FAU, Hermosa Ave. from 1st St. to 35th Street
Status: January 22, 1987: Environmental Staff Review
March 3, 1987: Planning Commission
If approved by the Planning Commission, we
anticipate designing CIP 85-102, 85-130, 85-137
as single project.
CIP 85-131 FAU, Hermosa Avenue at 2nd Street
Status:
In design. City Council, on January 13, 1987,
approved Consultant agreement. Workshop was
conducted with Planning Commission, Consultant
and Public Works Dept. on February 3, 1987. A
subsequent workshop was scheduled for March 17,
1987.
CIP 85-132 FAU, Hermosa Avenue at llth Street
Status: Same as CIP 85-131
CIP 85-133 FAU, Hermosa Avenue at Pier Avenue
Status: Same as CIP 85-131
CIP 85-134 FAU, Hermosa Avenue at 13th Street
Status: Same as CIP 85-131
3 a
CIP 85-136 FAU, Aviation Blvd. at Prospect Avenue
Status: Same as CIP 85-131
CIP 85-137 FAU, Valley/Ardmore at Gould Avenue
Status: Proposals for design due February 27, 1987
CIP 85-138 FAU, Valley/Ardmore at Pier Avenue
Status: Same as CIP 85-131
CIP 85-160 Roadway Improvements & Appurtenances
Status: Project Complete. City Council accepted_work as
complete February 10, 1987.
CIP 85-163 City Street Repairs
Status: Identified repair areas and prepared
specifications. Contract to be awarded February
24, 1987. Anticipated repair work to begin
April/May, 1987.
CIP 86-176 Traffic Control Pre-emption
Status: Request for proposal sent to engineer.
Anticipate including this with other signal
design work.
Street Lighting Improvements
CIP 85-201 Light Conversion and New Installations
Status: Pacific Coast Highway re -lighting completed.
Herondo - next scheduled street.
CIP 85-202 Hermosa Avenue Lighting
Status: On October 14, 1986, City Council took action to
expand the scope of the project. Preliminary
design work is scheduled to begin in March, 1987.
CIP 85-203 Pier Lighting
Status: Researching preventative maintenance of lighting,
including grounding of Pier - preparing lighting
specifications. Spoke with engineers and
contractors - awaiting proposals.
CIP 85-301
Status:
Sewers/Storm Drains
Pier Avenue Storm Drain
Project Complete.
CIP 86-302 Sixth Street Storm Drain Project
Status:
CIP 85-401
CIP 85-402
CIP 85-403
Status:
Plans prepared by L. A. County; project bid
opening on January 7, 1987. Construction to
begin April, 1987. Design of Beach Drive
drainage concern approved by Council on January
27, 1987. Beach Drive design to be presented to
Council March 10, 1987 for approval to construct.
Sewer Replacement, Target Area 2
Bids received 9/19/86 and bids rejected.
Anticipate rebid approval by Council on March 10,
1987 with construction during Summer of 1987
(there should be no inconvenience to Valley
School operation).
CIP 84-404 Target Area 1, Sanitary Sewer Replacement
Status: Project complete pending approval by Council and
final payment to contractor.
CIP 86-405 Replacement and Upsizing of Sanitary Sewer Lines
City wide
Status: No work to date - design anticipated to begin
Spring, 1987, pending award of contract for CIP
85-401, 85-402 and 85-403.
Park Improvements
CIP 85-501 Clark Field Restroom Refurbishing
Status: Project complete and scheduled to be accepted as
complete by Council on February 24, 1987.
CIP 85-502 Prospect Park Development
Status: Work on this project did not progress as swiftly
as anticipated. Hope to improve progress during
3rd and 4th quarter FY 86-87.
CIP 85-503 Pier Restroom Refurbishing
Status: Project complete and scheduled to accepted as
complete by Council on February 24, 1987.
CIP 86-506 Various Park Improvements
Status: New beach play equipment installed in November,
1986.
3
Public Buildings and Grounds
CIP 86-601 City Fuel Dispensing Equipment
Status: Currently out to bid. Bids due February 20,
1987.
CIP 86-602 Electrical Upgrade at City Hall
Status: RFP approved by Council on January 13, 1987.
Proposals due March 4, 1987.
CIP 86-603 Cushman Facility
Status: Anticipate to begin Spring, 1987
CIP 86-604 Building Improvements at Various Locations
Status: In progress -majority of minor projects
completed by October, 1986.
CIP 86-605 Parking Lot Paving at 75 -14th Street
Status: Project complete
Res.ectfully submitted,
Ant7ony Antich
Director of Public Works
AA:mv
cip/m
4
Concur:
f..
Gre_ory
Ci. Manage
er
Honorable Mayor and Members of the
Hermosa Beach City Council February 17, 1987
Special, Adjourned
City Council Meeting of
March 2, 1987
SCHEDULE FOR 1987 - '88 BUDGET AND
1987 - 1989 CAPITAL IMPROVEMENT PROGRAM CONSIDERATIONS
RECOMMENDATION
It is recommended that the City Council approve the following
calendar:
May 1, 1987
May 14, 1987
May 28, 1987
City Manager Proposed Budget
submitted to City Council
7:30 p.m., City Council
Budget Workshop
Only if an additional
workshop is needed,
7:30 p.m., Council Chambers
June 9, 1987 8:00 p.m., Public Hearing
June 23, 1987 Adoption of Budget and
Capital Improvement Program
BACKGROUND
The municipal code specifies (Section 2-98) that the City Manager
is responsible for preparation and submission of an annual budget
to the City Council; it shall be submitted to you no later than
May 15. By City Council policy this requirement has been May 1.
One public hearing shall be conducted; traditionally at least one
workshop meeting is held. In addition, we have now developed the
capability for a three year Capital Improvement Program.
ANALYSIS
The recommended schedule complies with the legal requirements
and, we believe, allows adequate time for Council consideration
and public input. Additionally, you are invited to modify and/or
expand the calendar timeline.
Alana M. Mastrian
Assistant City Manager
AMM/ld
cc All Department Heads
4
Honorable Mayor and Members of the
Hermosa Beach City Council
February 26, 1987
Special, Adjourned
Meeting of the City Council
March 2, 1987
CONSIDERATION OF ASSIGNING RESPONSIBILITY FOR
1987 CITY COUNCIL GOALS
AND DEVELOPING RELATED TASKS
RECOMMENDATION
It is recommended that the City Council:
1. Endorse the assigning of Responsible Agent and Secondary
Agent for the implementation of City Council Goals, and
2. Prioritize the goals and develop specific Commentary
instructions to the respective Agents.
BACKGROUND
The City Council, on October 23, 1986, established formal Goals.
ANALYSIS
The purpose of this report is to ascertain what are the priori-
ties and what should be the specific tasks to ensure accomplish-
ment of the goals.
The attached listing enumerates each of the goals and proposes
that there be a formal assignment of a Responsible Agent for each
goal. Additionally it is proposed that there be Secondary
Agent(s) who will also be heavily involved in tasks designed to
accomplish the goals.
There are 40 Goals. Obviously they can't all be the highest
priority. What then should be the focus?
Likewise, it is necessary that specific tasks or assignments be
developed for the implementation of the adopted goals. What in-
structions does the Council wish to make?
As an alternative to the City Council establishing priorities and
setting tasks, you could request staff to propose a prioritiza-
tion and a series of tasks.
Gre bry fT . e er ,
Cit Manage
GTM/ld
Attachment
cc: All Department Heads
CITY OF HERMOSA BEACH
CITY COUNCIL GOALS FOR 1987
NO. GOAL (UNPRIORITZED)
1 Gavel to Gavel TV Coverage - City Council
RESPONSIBLE
AGENT
SECONDARY
AGENTS
General Services Director Public Works Director
Planning Commission Community Resources
2. Legislative Effectivenes
3. Efficiency of City Operations
4. Improve Parking Supply
5. Remove Parking on Pacific Coast Highway
6. Encourage Commercial Vacant Land
City Manager
City Manager
General Services Director
Public Works Director
City Manager
7. Improve Parks and Recreation Programs Community Resources
8. Use Workshop Format City Manager
9. Limit Council Meetings City Council
10. Increase Acquisition of Park Lands
11. Improve Financial Picture
Asst. City Manager
Asst. City Manager
Planning Director
Planning Director
Planning Director
City Manager
Asst. City Manager
City Manager
City Manager Asst. City Manager
City Manager Asst. City Manager
Finance Administrator
12. Investigate locating Building, Planning and City Manager
Public Works Together
13. Zone All Parcels
14. Bootleg Program - Enforcement/Abatement Ordinance
Public Works Director
Building Director
Planning Director
Planning Director City Attorney
Building and Safety Director
15. Enforce Laws Firmly and Fairly
16. CUP's - Alcohol
17. Cooperate with School District
18. Staff address Citizen Written complaints prior
to items being sent to City Council
19. Closer Communication with Planning Commission
Public Safety Director City Manager
General Services Director Asst. City Manager
Planning Director
City Manager
City Manager
City Attorney
Asst. City Manager
City Clerk
Planning Director City Manager
City Attorney
20. Review "In -Lieu" Parking Fees Planning Director General Services Directr
21. Increase Employee Accountability City Manager Asst. City Manager
22. Review Settlement Policy - Civil Cases Pers Administrator Asst. City Manager
23. Director Access to City Attorney - Staff bring
to Council Administrative Policy re. Public
Access to City Attorney City Attorney City Manager
24. Improve Communication between City Manager and City Clerk Asst. City Manager
City Council City Manager
25. Positive City Image City Clerk Executive Staff
City Manager
26. Ordinance Amendment that requires "Owner of Building and Safety Director Planning Director
Record"
27. Performance vs. Prescriptive Standards City Manager Personnel Administrator
28. "Clean or Lien" Sidewalk Regulations - Admin-
istrative Policy - Abandoned Vehicles General Services Director Public Works Director
29. Reduce Liability Risk Pers Administrator Asst. City Manager
30. Growth Management/Density Reduction Planning Director Building Director
31. Increase use of Visual Aids at City Council
Meetings
Administrative Procedures Check List
Enhance Building Inspection Capability/Quality
32.
33.
34►.
Full Time Downtown Foot Patrol - Consistent and
Effective (Directed Patrol Activity)
35. Commercial Property on PCH, Maintenance,
Highest and Best Use
36. Increase Enforcement of Abandoned Property
37. Effective Property Maintenance Program
38. Investigate "Charter City"
39. Investigate Contracting out City Services
40. Create Economic Development Strategy
Asst. City Manager
City Manager
Building Director
Public Safety Director
City Manager
Building Director
Public Works Dept.
City Manager
Asst. City Manager
Public Works
City Manager
City Manager
Asst. City Manager
City Manager
City Manager
Planning Director
Public Safety Director
Asst. City Manager
City Attorney
Asst. City Manager.
Asst. City Manager
Executive Staff
CITY OF HERMOSA BEACH
CITY COUNCIL GOALS FOR 1987
NO. GOAL (UNPRIORITZED)
1
Gavel to Gavel TV Coverage - City Council
Planning Commission
RESPONSIBLE
AGENT
SECONDARY
AGENTS
General Services Director Public Works Director
Community Resources
2. Legislative Effectivenes City Manager
3. Efficiency of City Operations City Manager
4. Improve Parking Supply General Services Director
5. Remove Parking on Pacific Coast Highway Public Works Director
6. Encourage Commercial Vacant Land City Manager
7. Improve Parks and Recreation Programs Community Resources
8. Use Workshop Format City Manager
9. Limit Council Meetings City Council
10. Increase Acquisition of Park Lands City Manager
11. Improve Financial Picture City Manager
12. Investigate locating Building, Planning and
Public Works Together
13. Zone All Parcels
14. Bootleg Program - Enforcement/Abatement Ordinance
City Manager
Asst. City Manager
Asst. City Manager
Planning Director
Planning Director
Planning Director
City Manager
Asst. City Manager
City Manager
Asst. City Manager
Asst. City Manager
Finance Administrator
Public Works Director
Building Director
Planning Director
Planning Director City Attorney
Building and Safety Director
15. Enforce Laws Firmly and Fairly
16. CUP's - Alcohol
17. Cooperate with School District
18. Staff address Citizen Written complaints prior
to items being sent to City Council
19. Closer Communication with Planning Commission
Public Safety Director City Manager
General Services Director Asst. City Manager
Planning Director
City Manager
City Manager
City Attorney
Asst. City Manager
City Clerk
Planning Director City Manager
City Attorney
20. Review "In -Lieu" Parking Fees Planning Director General Services Directr
21. Increase Employee Accountability City Manager Asst. City Manager
22. Review Settlement Policy - Civil Cases Pers Administrator Asst. City Manager
23. Director Access to City Attorney - Staff bring
to Council Administrative Policy re. Public
Access to City Attorney
City Attorney City Manager
24. Improve Communication between City Manager and City Clerk Asst. City Manager
City Council City Manager
25. Positive City Image City Clerk Executive Staff
City Manager
26. Ordinance Amendment that requires "Owner of Building and Safety Director Planning Director
Record"
27. Performance vs. Prescriptive Standards City Manager Personnel Administrator
28. "Clean or Lien" Sidewalk Regulations - Admin-
istrative Policy - Abandoned Vehicles General Services Director Public Works Director
29. Reduce Liability Risk Pers Administrator Asst. City Manager
30. Growth Management/Density Reduction Planning Director Building Director
31. Increase use of Visual Aids at City Council
Meetings
Administrative Procedures Check List
Enhance Building Inspection Capability/Quality
32.
33.
34.
Full Time Downtown Foot Patrol - Consistent and
Effective (Directed Patrol Activity)
35. Commercial Property on PCH, Maintenance,
Highest and Best Use
36. Increase Enforcement of Abandoned Property
37. Effective Property Maintenance Program
38. Investigate "Charter City"
39. Investigate Contracting out City Services
40. Create Economic Development Strategy
Asst. City Manager
City Manager
Building Director
Public Safety Director
City Manager
Building Director
Public Works Dept.
City Manager
Asst. City Manager
Public Works
City Manager
City Manager
Asst. City Manager
City Manager
City Manager
Planning Director
Public Safety Director
Asst. City Manager
City Attorney
Asst. City Manager
Asst. City Manager
Executive Staff
NO. GOAL (UNPRIORITZED)
1
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
CITY OF HERMOSA BEACH
CITY COUNCIL GOALS FOR 1987
Gavel to Gavel TV Coverage - City Council
Planning Commission
Legislative Effectivenes
Efficiency of City Operations
Improve Parking Supply
Remove Parking on Pacific Coast Highway
Encourage Commercial Vacant Land
Improve Parks and Recreation Programs
Use Workshop Format
Limit Council Meetings
Increase Acquisition of Park Lands
Improve Financial Picture
12. Investigate locating Building, Planning and
Public Works Together
RESPONSIBLE
AGENT
General Services Director
City Manager
City Manager
General Services Director
Public Works Director
City Manager
Community Resources
City
City
City
City
Manager
Council
Manager
Manager
City Manager
SECONDARY
AGENTS
Public Works Director
Community Resources
Asst. City Manager
Asst. City Manager
Planning Director
Planning Director
Planning Director
City Manager
Asst. City Manager
City Manager
Asst. City Manager
Asst. City Manager
Finance Administrator
Public Works Director
Building Director
Planning Director
Planning Director
City Attorney
14. Bootleg Program - Enforcement/Abatement Ordinance
Building and
Safety Director
15. Enforce Laws Firmly and Fairly
16. CUP's - Alcohol
17. Cooperate with School District
18. Staff address Citizen Written complaints prior
to items being sent to City Council
19. Closer Communication with Planning Commission
20.
21.
22.
23.
Review "In -Lieu" Parking Fees
Increase Employee Accountability
Review Settlement Policy - Civil Cases
Director Access to City Attorney - Staff bring
to Council Administrative Policy re. Public
Access to City Attorney
24, Improve Communication between City Manager and
City Council
25. Positive City Image
26. Ordinance Amendment that requires "Owner of
Record"
27. Performance vs. Prescriptive Standards
28. "Clean or Lien" Sidewalk Regulations - Admin-
istrative Policy - Abandoned Vehicles
Reduce Liability Risk
Growth Management/Density
Public Safety Director
General Services Director
Planning Director
City Manager
City Manager
Planning Director
Planning Director
City Manager
Pers Administrator
City Attorney
City Clerk
City Manager
City Clerk
City Manager
Building and Safety Director
City Manager
General Services Director
City Manager
Asst. City Manager
City Attorney
Asst. City Manager
City Clerk
City Manager
City Attorney
General Services Directr
Asst. City Manager
Asst. City Manager
City Manager
Asst. City Manager
Executive Staff
Planning Director
Personnel Administrator
Public Works Director
Administrator
Planning Director
Building Director
31. Increase use of Visual Aids at City Council
Meetings
Administrative Procedures Check List
Enhance Building Inspection Capability/Quality
32.
33.
34.
Full Time Downtown Foot Patrol - Consistent and
Effective (Directed Patrol Activity)
35. Commercial Property on PCH, Maintenance,
Highest and Best Use
36. Increase Enforcement of Abandoned Property
37. Effective Property Maintenance Program
38. Investigate "Charter City"
39. Investigate Contracting out City Services
40. Create Economic Development Strategy
Asst. City Manager
City Manager
Building Director
Public Safety Director
City Manager
Building Director
Public Works Dept.
City Manager
Asst. City Manager
Public Works
City Manager
City Manager
Asst. City Manager
City Manager
City Manager
Planning Director
Public Safety Director
Asst. City Manager
City Attorney
Asst. City Manager
Asst. City Manager
Executive Staff
Honorable Mayor and Members of the
Hermosa Beach City Council
February 26, 1987
Special, Adjourned
Meeting of the City Council
March 2, 1987
CONSIDERATION OF ASSIGNING RESPONSIBILITY FOR
1987 CITY COUNCIL GOALS
AND DEVELOPING RELATED TASKS
RECOMMENDATION0\-S L -t (3
It is recommended that the City Council:
'1. Endorse the assigning of Responsible Agent and Secondary
Agent for the implementation of City Council Goals, and
2. Prioritize the goals and develop specific Commentary
instructions to the respective Agents.
BACKGROUND
The City Council, on October 23, 1986, established formal Goals.
ANALYSIS
The purpose of this report is to ascertain what are the priori-
ties and what should be the specific tasks to ensure accomplish-
ment of the goals.
The attached listing enumerates each of the goals and proposes
that there be a formal assignment of a Responsible Agent for each
goal. Additionally it is proposed that there be Secondary
Agent(s) who will also be heavily involved in tasks designed to
accomplish the goals.
There are 40 Goals. Obviously they can't all be the highest
priority. Wbat then should be the focus?
Likewise, it is necessary that specific tasks or assignments be
developed for the implementation of the adopted goals. What in-
structions does the Council wish to make?
As an alternative to the City Council establishing priorities and
setting tasks, you could request staff to propose a prioritiza-
tion and a series of tasks.
L/u e u
Greory r
Citr Manage �
GTM/ld
Attachment
cc: All Department Heads
February 17, 1987
Mayor and Members City Council Meeting
of the City Council of March 2, 1987
REQUEST FOR EXTRA -BUDGETARY APPROPRIATION FOR CRIME PREVENTION AND
COMMUNITY AWARENESS PROGRAMS
RECct ENDATION:
It is recommended that City Council appropriate $5,000. to fund Crime Prevention
and Community Awareness programs in the City.
BACKGROUND:
The Crime Prevention and Community Awareness programs offered by the Department
are being well received in the City. We are experiencing a higher demand for
the various services and programs as more and more people find out about than.
In order to continue providing the services to the community, we need to have
additional funding for purchase of necessary supplies and equipment.
ANALYSIS:
Officer Thompson of the Hermosa Beach Police Department has been assigned the
task of Crime Prevention in addition to his regular duties. He is responsible
for the various programs and services that we provide the City.
Sane of those programs are:
Neighborhood Watch
Various Safety programs in the Schools
D.A.R.E. program(Drug Abuse Resistance Education)
Hone Security Checks
The Weekly Community Awareness program on channel 10
In order to continue these programs and include more of our population we are
asking for additional funding in order to purchase signs, stickers, hand out
materials, portable camera, recorder and lights.
CONCUR:
er City ager
er
FISCAL IMPACT NOTED:
Vicki Co and, Finance Administrator
WI-
4111lik , ..
Steve ^isniewski
ctful
'tted,
Director of Public Safety
2 1 8
February 13, 1987
Mayor and Members City Council Meeting
of the City Council of March 2,1987
REQUEST TO AUTHORIZE PARTICIPATION IN THE AUTOMATED WANI'S AND WARRANTS
SYSTEM AND TO APPROVE AND APPROPRIATE FUNDING AT MID -YEAR
RECOMMENDATION:
It is recommended that City Council:
1. Authorize participation in the Automated Wants and Warrants Systen(AWWS)
2. Appropriate $8,750. to fund the costs of joining AWNS.
BACKGROUND:
Because of fiscal constraints, the Hermosa Beach Police Department withdrew frau
participation in the AWS program in July of 1986.
Because of non -participation, there are currently 5,200+ outstanding warrants
being held by the Department. Without participation in the program, we are not
able to apprehend those individuals who do not reside in Hermosa Beach and thus
are losing the revenues which could be derived frau those warrants.
ANALYSIS:
The Automated Wants and Warrants Syston(ANWS) is a program which enables
participating agencies the ability to enter all of their outstanding warrants
into an area wide canputerized system. When an individual is stopped by another
agency, a check is made and if there are any outstanding warrants, the officer
is able to make the arrest and collect the fine or bail. That revenue is then
sent to the agency which issued the warrant.
Since Hermosa Beach stopped participation in the program, non of our warrants
are in the system, but we serve warrants for other jurisdictions which are
participating. This means that the only Hermosa Beach warrants served are those
which we are able to serve ourselves. Most of the individuals named in the
warrants are frau other jurisdictions or can't be located for various reasons.
If all of our warrants were in the system, the success factor would probably pay
for our participation in a very short time.
We currently have approximately 5,000 warrants to be entered into the system.
The cost for entry per warrant is currently $1.65. This would be a total of
$8,250. for warrant entry. As we sort through the various warrants to be
entered, we will probably find several that can be deleted which would lower
this cost.
2 I 7
The program has an additional charge of $14.70 per year per sworn officer. We
currently have 34 sworn officers so this would total $499.80.
The total cost of re-entry into the program would not exceed $8,750. If we con-
sidered that each of the outstanding warrants were worth only $20.00 each it is
easy to see that we would recover our investment rapidly.
Steve S. Wisniewski
Director of Public Safety
CONCUR:
Ci \
Greg T. Mey , City Manager
FISCAL IMPACT NOTED:
Vicki Copeland, Finance Administrator
February 26, 1987
Honorable Mayor and Members City Council Meeting
of the City Council of March 2, 1987
1985-86 FINANCIAL STATEMENT
Attached is a revised copy of the 1985-86 Financial Statement.
A designation of the fund balance for Affordable Housing was in-
advertantly left off of the statement. See page 19, Note N. This
designation has appeared in the financial statement since 1982-
83. The revision adds the designation as shown on page 16.
Concur:
Gr=gor T Meyer
C'ty Mana:er
Attachments
VC/sl
Viki Copeland
Finance Administrator
L
L
L,
LJ
0
0•_'— /'
' Honorab]e_Mayor_and_Membera_of the '
Hermosa Beach City Council February 26,1987
/
' Rei iffed_t v n ups, Midyear Review For tba_ieeting_of °
_Re:
' March 2, 1987 9
Below are the recommended revisions to the estimated revenues. ”
° ORIGINAL MIDYEAR INCREASE
ESTIMATEREVISION (DECREASE) :1
7 i6
GENERAL FUND 0
m
6 Taxes 72
3101 Current Year Secured $1,827,503.00 $1,827,503.00 -
" 3102 Current. Year_Unsecured $130,053.00 $1307053_00
3103 Prior Year Collections $117,308.00 $117,308.00 ;
n 3104 Interest/Penalties $5,865.00 $5,865.00 77
1,6
3105 0-ther_Property Taxes $30Q 00 $300 00
. 3107 Transfer Tax $67,186.00 $101,715.00 $34,529.00 29
:o
n 3108 Sales Tax $1,735,500.00 $1,627,425.00 ($108,075.00) 10
" 311D Cnhle TV Franchise $62,300-00 $7.077000-0O $7,700.00 °'
" 3111 Electric Franchise $25,000.00 $25,000.00
3112 Gas Franchise51,000.00
3113 _Refuse Franchise - - $90,.00000 $
:7
90-,000 00 °°
3114 Transient Occupancy $41,863.00 $49,571.00 $7,708.00 ;;
3115 Business License362,400.00
16 s _ $• 1 le $362,400.00 •• s05_0s
31
" Licenses and Permits .
" 3202 clog Licenses $.15,000_.00 $13,500 00 ($1.,500_00)
" 3203 Bicycle Licenses $200.00 $200.00 06
" 3204 Building Permits $160,000.00 $250,000.00 $90,000.00
" 3205 Electric PprmitR $387000 00 $5.0-,--000_-00 $12,000_08
" 3206 Plumbing Permits $30,000.00 $42,000.00 $12,000.00 4g
" 3207 Occupancy Permits $3,000.00 $3,000.00 1'
3209 Garage_Salea $250_00 $100 00 ($154_-.00)_x;;
'°3210 Bingo Permits $200.00 $200.0044
" 3211 Banner Permits $500.00 $500.00 55
" 3212 Animal__LFowl Permits; $1QO On $0,00 {$100_00) 55
_
;;
133213 Animal Redemption Fee $4,000.00 $3,500.00 ($500.00) 0
41 11
" Fines_&.'orfpiturps 60
'° 3301 Vehicle Code Violations $63,930.00 $70,000.00 $6,070.00 12
" 3303 Court Fines/Police Dept $40,000.00 $47,000.00 $7,000.00 63
0 f.
49 65
66
10 -
67
11 69
1751 f9
11
11
l6
1' S
11 2-ADl
11 73
V
0
0
J
u.
s
J
J
J
J
J
•
0
A
-Pg 2
Use of Money & Property
3401 Interest Income $25,000.00 $27,488.00 $2,488.00
3402 Rents & Concessions $5,000:00 $6,400.00 $1,400.00
3403 Pier Revenue $9,960.00 $9,960.00
3404 Comm Ctr Leases $55,000.00 $55,000.00 ,
3405 Coth F tr Rentals $30,06670-0 $40,000.00 $10,000.00
0 3406 Comm Ctr Theatre $17,000.00 $17,000.00 ,
9 3411 Other Facilities $40,000.00 $62,000.00 $22,000.00 ,
,0 3412 Tennis Courts $6,000.00 $10,000.00 $4,000.00 '
3414 Prop A Conversion $0.00 $0.00 ,
12 3415 011 Platform Fee $0.00 $0.00 ,
ib 3416 Oil Royalties $20,000.00 $20,000.00 '
3417 Oil Bidders Fee $100,000.00 $100,000.00
15 7
Intergovernmental7State ,
3504 In Lieu Off Highway $400.00 $400.00
. 3505 In Lieu Motor Vehicle $496,269.00 $496,269.00 ,
19 3507 Highway Sweeping $6,000.00 $6,000.00
70 3508 Mandated Costs $32,684.00 $32,684.00 .
3509 Homeowner Prop Tx Relief $60,000.00 $60,000.00
n 3510 Post $29,246.00 $29,246.00
n 3511 Stc-Svc Off Training $7,000.00 $7,000.00
74 3514 Cigarette Tax 53,496.00 $53496.00
,6 3515 Supplemental Subvention $37,881.00 $37,881.00 ,
16 3516 Scag Transit Plan $0.00 $0.00 ,
,
n Current Service Charges '
n 3801 Residential Inspection $12,000.00 $15,000.00 $3,000.00
70 3802 Sign Review $1,200.00 $700.00 ($500.00)
3803 Environmental Impact $1f,500.00 $11,960.00 $460.00
n 3806 Board of Appeals $1,325.00 $1,550.00 $225.00 ,
» 3808 Zone Variance Review $1,240.00 $2,370.00 $1,130.00 ,
_
34 3809 Tentative Map Review $2,700.00 $5,640.00 $2,940.00 '
37 3810 Final Map Review $1,750.00 $1,250.00 ($500.00) 6
56 3811 Zone Change Review $3 600.00 $1,800.00 ($1,800.00) '
3812 Conditional Use Review $12,160.00 $10,000.00 ($2,160.00) '
m 3813 Plan Check Fees $120,000.00 $150,000.00 $30,000.00
09 3814 Planning/Zoning Appeal $800.00 $800.00 ->
40 3815 Pubric Wor s Services $10,000.00 $12,000.00 $2,000.00 ;
3816 Curb/Sidewalk Repair $100.00 $100.00
3817 Special Curb Marking $1,750.00 $1750.00 6
U 3818 Police Services $12,000.00 $14,000.00 $2,000.00 ,
3819 Jail Services $16,600.00 $28,000.00 $11,400.00 6
66 3820 Trusty Admin Fee1,000.00 $2,100.00 $1,100.00
3121. Fingerpnt Service $2,500.00 $2,500.00 '
3823 Special Event Security $13,125.00 $13,125.00
4+ 3824 Vehicle Inspection Fees $1,500.00 $2,000.00 $500.00 .
6. 3825 Public Notice Posting $50.00 $50.00
60 3826 Rec Programs/Classes $0.00 $0.00 6
3827 Library Grounds Maint $4,552.00 $5,007.00 $455.00 6
62 3831 Street Cut Inspection $45,000.00 $40,000.00 ($5,000.00)
66 3834 Encroachment Permit $1,500.00 $2,000.00 $500.00 ,
6. 3835 Weed & Lot Cleaning $1,000.00 $1,000.00 ,
66 3-836 Fumigation Inspect Fee $6,500.00 $7,000.00 $500.00 ,
56 3837 Returned Check Charge $700.00 $700.00
17
53
:o
Pg 3
-3838
' 839
3840
3841
57
Sale of Map/Publications
Photocopy -Charges
Ambulance Transport
Police Towing
Parking -Plan --Application
$600.00 $600.00
-$900-.-00 $900.00
$6,500.00 $6,500.00
$30,000.00 $26,000.00
$0,00 $1;090:-00
Other Revenue
901 Sale-o-Real-/-Pera-Property $;
3902 Refunds/Reimb Prev Yr
3903 Contributions Non Govt
3904 General -Miscellaneous
FUND TOTAL
($4,000.00)
$1;090.00
0;2-25--00 $10 00-00 ($10-225.-00)
$500.00 $1,734.00 $1,234.00
$1,000.00 $1,300.00 $300.00
S17000,00 :00 $25-5-73-: 00 $24-573-.00
$7,176,781.00 $7,441,578.00
F
$264,797.00
LIGHTING DISTRICT FUND
Taxe
3101 Current Year Secured
3103 Prior Year Collections
$400,000.00
$25,000.00
7' 31 Inter- estbP-enalties $ 748-:00
75
25
V
7'
79
So
37
3,
5.
33
34
37
3,
59
40
49
Use of Money & Property
3401 I nter-e s -t- Insome
5F
51
53
M
55
59
57
$64,00000
Other Revenue
3904 Cene a M-i-aoellaneeu
FUND TOTAL $490,748.00
$400,000.00
$25,000.00
$-177-4-80-0
19
FF
7
11
14
15
7,57
.,
79
30
51
57
15
I55
$44-r8-5-8,00 0-19,142.00) 33^
00,0 $27000:0
$473,606.00 ($17,142.00)
PARKING FUND
F-ines-& Forfeitures
3302 Court Fines/Parking
Use-of-Money-&-Propeet
3401 Interest Income
3407 Parking Lot Rental
3409 Lot B
3413 VPD Lease
$1,100,000.00
$1,300,000.00 $200,000.00
Current-Servicc Charge
$70,000.00
$31,104.00
$22;000.00
$49,500.00
$18,000.00
$31,104.00
*15,000.-00
$49,500.00
($52,000.00)
($+000:00)
3842 Parking Meters
3843 Parking Permits: Annual
3844 Dal1-y-Park -ng-Permi-tG
3845 VPD Lot Permits/Daily
3846 VPD Lot Permits/Monthly
3847 Validation -Stamp
3848
3849
3850 Contract.
3851 Key Cards
Driveway Permits
Guests Permits
FUND -TOTAL
$500,000.00
$150,000.00
$7;000..00
$500,000.00
$150,000.00
$3;500.-00 ($37500.00)
$1,400.00 $3,000.00 $1,600.00
$6,000.00 $6,000.00
$2;000..00 $6,000.00 $4,000.00
$500.00 $800.00 $300.00
$1,000.00 $1,400.00 $400.00
$200:00 $500-700 $300:00—
$100.00 $100.00
$1,-940-804:00 $2;0847904.00 $144,100.00
34
.,
1:
15
41
9I
41
.F
51
5:
5.
5'
5,4
5,
51
Pg 4
TATE-CAS-TAX-FUN
9
1e
17
11
11
16
17
Use of Money & Property
—3401 Interest-ncomc
Intergovernmental/State
3501 Section -2106 Alloeation
3502 Section 2107 Allocation
3503 Section 2107.5 Allocation
3519 Section 2126--(SB300)
3521 Outer Continental Shelf
FUND-TOTA
COUNTY GAS TAX FUND
$26-;000:00 $16;914.-00
$54,147.00
$166,069.00
$4,000.00
$45,655:00
$64,029.00
$54;147:00
$166,069.00
$4,000.00
$45,655.00
$64,029.00
$3-59, 900.00 $350,014700
($9-086-.00)---
$9,086-00}
3401
Use of Money & Property
Interest Income
$3,600.00
$1,700.00
($1,900.00)
]5
16
Intergovernmental/County
$88,588.00
$88 58&:00
360-1
County-Afdo-to—CC><-t-��r{es
FUND TOTAL
$92,188.00
$90,288.00
($1,900.00)
'
]7
"
PARK & RECTN FACTY FUND
Taxes
.
]5
]6
3116
Park Rec Facility Tax
Use r- Droperty
$30,000.00
$160,000.00
$130,000.00
"
]9
3401
-of -Mone -y
Interest Income
$17,000.00
$8,466.00
($8,534.00)
'°
"
3910
Other -Revenue
Park,Recreation in Lieu
$98,000.00
$145,_000-_00
$30,000.00'
$198x+66-4-00
($68,000.00)
$53T466,00
.
.5
EUND_TOTAT•
REVENUE SHARING FUND
'°
47
.P
3401
Use of Money & Property
Interest Income
$0.00
$2,024.00
$2,024.00
.
"
51
3702
Intergovernment/Federal
Revenue Sharing
$18,641.00
$11,883.00
($6,758.00)
,
5]
1.
FUND TOTAL
$18,641.00
$13,907.00
($4,734.00)
55
55
57
14
If
a
44
45
:6
of
ac
51
P
5:
54
51
55
61
6:
6.
Co
61
Pg 5
COMM DEV BLOCK GRT FUND 7
7 1
Intergovt/Federal
3706 Runaway Shelter 84C259 $0.00 $0.00
3707 CDBG Admin 84C261 $1,370.00 $1,370.00 e
3708 Sewer Study-3B263 $0.00 $0.00 ,
3709 St Drain Upgrade 84C260 $0.00 $0.00 11
3710 Sewer Rehab 84.C264/JB26 $0.00 $0.00
Other Revenue 1i
3902 Refunds/Reim Prev Year $6,533.00 • $6,533.00 ;
FUND TOTAL $7,903.00 $7,903.00
14
If
,
TRANSIT FUND
7•
Taxes ;
3117 Proposition A Transit $188,785.00 $188,785.00 ;;
21
77 -3118 State-Transit-Assistance $0.00 $0.00 Ti
77 3119 Local Transit Funds $0.00 $0.00 Y.
7137
7 Use-of-Money-&-Pzoperty "
3401 Interest Income $20,000.00 $3,000.00 ($17,000.00)
76 3;
77
Current -Service -Charges „
, 3852 Fares ESEA $3,400.00 $3,400.00 ,'
3853 Fares Beach Shuttle$150.00$0.00 "
,o ($150.00) „
00 $500•
3138-54 Fare $3;000:00 $3-7500-7o0 70
373855 Bus Passes ..., I- $3,295.00 $3,295.00 {1:
;, IUND-TOTAL $2187630:00 $20t7980-700 ($16,650.00) i.:
., w
II
42 GRANT FUND sa
u er
„ Use of Money & Property ,a
„ 3401 Interest Income $0.00 $120.00 $120.00 .,
.R RI
,; Intergovernmental State 676,
,.3513 Roberti Zberg $8,290.00 $8,290.00 0
„ 35-17 Office-of-Traffic-Safety $55,000-700 $55T0007-00 61
50 3518 Hydrant Upgrade/76-1902 $0.00 $0.00 6
5?3520 Roberti Zberg 19-162 $8,976.00 $8,976.00 ,I
„
RS
71
f]
14Intergovernment/Federal
313701 Federal Aid-Urban $496;454:00 $496;454700
563705 Hazard Elimination Sfty $0.00 $0.00 ;;
37.
1
'
'
- Pg 6
' CROSSING GUARD FUND
'
'
6
3101
Taxes
Current Year Secured
$73,495.00
$73,495.00
'
.
°
3103
3104
Pr -i -or -Year -Collect . .
Interest/Penalties
5,000;00
$100.00
$37000.00
$100.00
°
11
3401
Use --o f-Money-&-Froper ty
Interest Income
FUND—TOTAL
$0.00
$367595=00
$0.00
$767595:O1
17
H
I,
SEWER FUND
16
.6
3401
Use of Money & Property
Interest Income
$2,600.00
$10,000.00
$7,400.00
°
'°
3828
Current Service Charges
Sewer Connection Fee
$20,000.00
$25,000.00
$5,000.00
$380.-00
"
76
7.
3829
3832
Sewer—Demolition—Fe
Sewer Lateral Installtn
$820.00
$7,889.00
$1-200:00
$7,889.00
"
76
"
3906
Other—Revenuc
In Lieu Sewer Fee
$25,385.00
$22,000.00
($3,385.00)
76
23
70
DEBT SERVICE FUND
FUND -TOTAL
$56;694:00
*667089:00
$97395700
"
,6
3401
Use of Money & Property
Interest Income
$18,000.00
$3,031.00
($14,969.00)
,6
"
7i
FUND TOTAL
$18,000.00
$3,031.00
($14,969.00)
"
]6
"
CAPTL IMPRVMT FUND
40
°'
3401
Use-of-Money-&-Preperty
Interest Income
$12,000.00
$4,553.00
X4,553.00
($7,447.00)
67
66
6,
FUND -TOTAL
$12,000:00
(77447:00)
.6
.7
44
,.
„
,6
6)
GRAND- TOT -ALS
$H,1827604:00
$1175827554:00
$399,-950;00
1
GENERAL FUND - DEPARTMENT
CITY COUNCIL
CITY CLERK/RECORDS
ELECTIONS
LEGAL - ATTORNEY
LEGAL - PROSECUTOR
CITY TREASURER
CITY MANAGER
FINANCE/ADMINISTRATION
PERSONNEL
CABLE TV
DATA PROCESSING
BUSINESS LICENSE
GENERAL APPROPRIATIONS
EMPLOYEE HEALTH BENEFITS
RETIREMENT
PROSPECTIVE EXPENDITURES
ADVERTISING
POLICE
FIRE
ANIMAL CONTROL
CIVIL DEFENSE
STREET MAINTENANCE
PLANNING
PLANNING COMMISSION
BUILDING
PUBLIC WORKS ADMINISTRATION
BOARD OF APPEALS
BUILDING MAINTENANCE
EQUIPMENT SERVICE •
COMMUNITY RESOURCES
COMMUNITY RESOURCES COMMISSION
CHILD ABUSE
PARKS
CAPITAL IMPROVEMENT PROJECTS
TOTAL
RECAP OF EXPENDITURES
1986 - 87 MIDYEAR BUDGET REVIEW
EXPENDITURES
56,083
41,205
11,200
197,050
27,368
28,647
112,831
213,554
84,803
3,418
262,039
68,582
30,226
393,646
975,962
52,836
8,001
2,283,107
1,011,909
77,448
10,953
220,840
120,327
5,980
280,411
204,767
285
278,877
83,031
217,601
190
23,750
195,650
95,820
7,678,397
SPECIAL FUND - DEPARTMENT
STREET LIGHTING FUND
STREET LIGHTING DIVISION
CAPITAL IMPROVEMENT PROJECTS
PARKING FUND
VEHICLE PARKING DISTRICT
PARKING ENFORCEMENT
CAPITAL IMPROVEMENT PROJECTS
COMM CTR. PKG STRUCTURE
STATE GAS TAX FUND
MEDIANS
TRAFFIC SAFETY
CAPITAL IMPROVEMENT PROJECTS
PARKS RECREATION FACILITY TAX FUND
CAPITAL IMPROVEMENT PROJECTS
GENERAL REVENUE SHARING
CAPITAL IMPROVEMENT PROJECTS
PROPOSITION A FUND
GRANT FUND
CAPITAL IMPROVEMENT PROJECTS
CROSSING GUARD DISTRICT
SEWER FUND
EWER/STORM DRAIN
CAPITAL IMPROVEMENT PROJECTS
INSCE FUND
CITY INSURANCE
WORKER'S COMPENSATION
UNEMPLOYMENT INSURANCE
MEDICARE
ti
V�^
OTHER FUND TOTAL
GRAND TOTAL
EXPENDITURES
379,565
236,500
321,464
750,161
35,063
10,000
133,832
89,969
130,264
206,534
43,302
201,885
636,405
71,370
105,615
737,460
221,500
161,938
74,574
5,258
4,552,659
12,231,056
2 (z)
Honorable Mayor and Members of
the Hermosa Beach City Council
RECOMMENDATION
January 8, 1987
City Council Meeting of
March 2, 1987
1985-86 REPORT ON INTERNAL ACCOUNTING
CONTROL (MANAGEMENT LETTER)
GRANT THORNTON
ut 0
It is recommended that the City Council accept the staff
recommendation relating to the Report on Internal Accounting
Control submitted by Grant Thornton for fiscal year 1985-86.
Staff recommends the following:
FIXED ASSETS
Funds have been provided in the 1986-87 Finance Department budget
for appraisal of fixed assets and software to allow integration
of the information with the financial management system. The RFP
for fixed assets is in the planning stage. It is intended that
the contracting vendor will work closely with the City's auditors
to guarantee satisfaction with the resultant product, thereby
eliminating this qualification on the City's financial statement.
SEGREGATION OF DUTIES
Items (1) and (2) can be successfuly implemented at this time
without waiting for an opportunity via a newly hired employee.
GENERAL LONG TERM DEBT
Accounts have been set up and can be utilized to implement this
recommendation.
RECEIVABLES
This one error was an oversight. A review process has been
established to prevent reoccurrence.
PREPAID INSURANCE
This account has been established and will be utilized when
appropriate.
OPERATING TRANSFERS
A method to differentiate between transfers has been developed
and discussed with the auditors. It is recommended that this
method of memo notation and quarterly reconciliation of interfund
transfers be implemented.
1b
DEBT SERVICE AND CAPITAL PROJECTS FUNDS
It is recommended that, consistent with the audit recommendation,
these funds be eliminated and amounts transferred to the General
Fund, with designations therein for these purposes.
INTERNAL SERVICE FUND
All insurance accounts have been budgeted in the Internal Service
Fund for 1986-87. The accountant is in the process of
establishing service charges to the departments for insurance to
enable the fund to function in a manner consistent with the fund
type.
ELECTRONIC DATA PROCESSING
The General Services Director has indicated that these items have
been discussed at length with the audit staff and all will be
addressed within this calendar year.
Concur:
Gr
Ci
gor T
y Mana:er
yer
2
Viki Copelan
Finance Administrator
001 GENERAL FUND
105 LIGHTING
110 PARKING FUND
115 STATE GAS TAX
120 COUNTY GAS TAX
•
* Fund balance includes
Asset Replacement
Capital Improvements
Parking Facility
Unappropriated
CITY OF HERMOSA BEACH
BUDGET SUMMARY BY FUND
1986 - 87 MIDYEAR BUDGET REVIEW
ESTIMATED
FUND BALANCE
JUNE 30, 1986
852,824
1,309,873
-0-
462,118
47,611
Designation for:
120,000
522,706
5,254
73,038
ESTIMATED
REVENUE
1986-1987
7,441,578
473,606
2,084,904
350,814
90,288
PROPOSED
EXPENDITURES
1986-1987
7,678,397
616,065
1,116,688
354,065
Open Space Acquisition/Maintenance
Prospect Park Acquisition
Debt Service
Affordable Housing
TRANSFER
IN - (OUT)
1,830,814
(1,413,985)
(147,995)
(968,216)
100,351
(189,642)
(88,588)
$100,000
100,000
65,005
46,831
146) PzI
ESTIMATED
FUND BALANCE
JUNE 30, 1987
1,032,834 *
1,019,419
-0-
369,576
49,311
2 (3)
ESTIMATED ESTIMATED PROPOSED TRANSFER ESTIMATED
FUND BALANCE REVENUE EXPENDITURES IN - (OUT) FUND BALANCE
JUNE 30, 1986 1986-1987 1986-1987 JUNE 30, 1987
125 PARK RECREATION FACILITIES 210,770 198,466 206,534 8,976
(80,000) 131,678*
130 REVENUE SHARING 97,271 13,907 43,302 8,290 76,166
140 CDBG (29,217) 7,903 21,314 -0-
145 PROPOSITION A FUND 59,863 201,980 201,885 44,833 104,791
150 GRANT FUND 3,353 568,840 636,405 84,951 3,473
(17,266)
155 CROSSING GUARD (10,098) 76,595 71,370 (4,250) (9,123)
160 SEWER FUND 314,435 66,089 843,075 664,005 166,486
(34,968)
205 DEBT SERVICE 169,610 3,031 (172,641) -0-
305 CAPITAL IMPROVEMENT 254,700 4,553 (259,253) -0-
705 INSURANCE FUND 100,000 463,270 613,270 250,000**
TOTAL
3,843,113 . 11,582.,554.
* Fund balance includes designation for Prospect Park $50,000
** Fund balance includes reserve for self-insured retention $250,000
12,231,056 3,194,611
Honorable Mayor and Members of the
Hermosa Beach City Council February 25, 1987
City Council Meeting
of March 2, 1987
1985 - 1986 CITY AUDIT
RECOMMENDATI ON
It is recommended that the City Council accept the 1985 - 1986
Financial Audit, dated September 22, 1986 as prepared by the out-
side auditor, Grant Thornton. ^
BACKGROUND %V�
The role of the outside auditor is a time honored one in city
government and, in Hermosa Beach it has been our practice to an-
nually audit the financial statements and encourage the Auditor
to submit a.Management Letter.
Tonight you are being asked to accept the report from your out-
side auditor, GRANT THORNTON. They have examined our financial
records and transactions for the period July 1, 1985 through June
30, 1986. As a result of that examination they have issued their
formal opinion and have further, as Council policy requires, sub-
mitted a management letter to you regarding internal controls,
suggestions for improvements, etc.
ANALYSIS
The audit found that our records and processes were being con-
ducted appropriately and generally in conformity with good
governmental accounting practices. No improprieties or embezzle-
ments were discovered. And throughout the process city staff was
cooperative and facilitative.
And so the financial statements are submitted to you with the
recommendation that you, by motion, formally accept them.
Mr. Lee Strom of Grant Thornton was responsible for the conduct
of this audit. He is here and able to answer any technical ques-
tions you might have regarding either the financial statements or
the management letter.
Additionally, I would like to take a few moments during the meet-
ing to review with you some of the financial numbers from the
Audit. The attached charts will be used in that presentation on
March 2.
Gr
Ci
or T Teyer
.y Manager
GTM/ld
Attachments
cc Executive Staff
All Employee Groups
la
DETAILED BREAKDOWN OF
JUNE 30, 1986 FUND BALANCE
FUND BALANCE, JULY 1, 1985 $ 21,235
ESTIMATED EXCESS REVENUES
OVER EXPENDITURES $ 91,363
( $ 100,000 )
E XCESS REVENUE $ 467,333
E XPENDITURES UNDER BUDGET $ 186,173
$ 186,720
TRANSFER TO INSURANCE FUND
N ET TRANSFER
FUND BALANCE AT END OF YEAR
$ 852,824
SIGNIFICANT
1985 - 1986 EXPENSES
LESS THAN BUDGETED
RETIREMENT
GEN. APPROP
PROS. EXPEND
POLICE
$ 59,551
$ 37,124
$ 61,458
$ 30,190
SIGNIFICANT
1985-1986 REVENUES
MORE THAN BUDGETED
P RLMARV( CONTRIBUTING FACTORS
GENERAL FUND $ 467,333
PROPERTY TAXES
U TILITY USERS TAX
S UPPLEMENTAL ROLL
S ALES TAX ADJUST
B UILDING PERMITS
P LUMBING PERMITS
FINES -FORFEITURES
O THER
MOTOR VEHICLE FEES
CIGARETTE TAX
SUPPLEMENTAL SUBVENT
PLAN CHECK
R• ESIDENTIAL INSP
INTEREST
$ 28,749
$ 42,800
$ 34,865
$ 85,000
$ 53,497
$ 11,017
S 9,970
$ 30,691
$ 72,027
$ 6,249
$ 7,868
$ 51,345
$ 5,345
$ 27,910
PARKING FUND 325,496
COURT FINES
METERS
VPD LEASE
OTHER
$ 286,829
9,499
$ 21,004
$ 8, 164
N 0-1 C c (\C
PARKING FUND ANALYSIS
1985 - '86 BUDGET
REVENUES MINUS
EXPENSES WERE
TRANSFER IN
MORE THAN BUDGET
TRANSFERRED TO
GENERAL FUND
$ 307,985
$ 5,254
$ 313,239
COURT FINES - PARKING $ 286,829
VPD- LEASE
METERS
OTHER VARIANCES
IN ACCOUNTS
$ 21,004
$ 9,449
$ 8,164
TOTAL $ 325,496
EXPENDITURES OVER BUDGET ( $6,353 )
TRANSFER IN ($5,254)
OTHER ADJUSTMENTS ( $650 )
RESULTANT $ 313,239
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DETAILED BREAKDOWN OF
JUNE 30, 1986 FUND BALANCE
FUND BALANCE, JULY 1, 1985
E STIMATED EXCESS REVENUES l*
OVER EXPENDITURES
TRANSFER TO INSURANCE FUND
EXCESS REVENUE
E XPENDITURES UNDER BUDGET
N ET TRANSFER VCJL,., 4.A
FUND BALANCE AT END OF YEAR
$ 21,235
$ 91,363
( $ 100,000 )
$ 467,333
$ 186,173
$ 186,720
$ 852,824
SIGNIFICANT
1985 - 1986 EXPENSES
LESS THAN BUDGETED
RETIREMENT
GEN. APPROP
PROS. EXPEND
POLICE
$ 59,551
$ 37,124
$ 61,458
$ 30,190
SIGNIFICANT
1985- 1986 REVENUES
MORE THAN BUDGETED
PRIMARY CONTRIBUTING FACTORS
GENERAL FUND $ 467,333
P ROPERTY TAXES
U TILITY USERS TAX
S UPPLEMENTAL ROLL
S ALES TAX ADJUST
B UILDING PERMITS
P LUMBING PERMITS
FINES -FORFEITURES
U SE OF MONEY
MOTOR VEHICLE FEES
CIGARETTE TAX
S UPPLEMENTAL SUBVENT
PLAN CHECK
RESIDENTIAL INSP
INTEREST
OTHER
$ 28,749
$ 42,800
$ 34,865
$ 85,000
$ 53,497
$ 11,017
$ 9,970
( $ 4,825 )
$ 72,027
$ 6,249
$ 7,868
$ 51,345
$ 5,345
$ 27,910
( $ 3,900 )
PARKING FUND $ 325,496
COURT FINES
METERS
VPD LEASE
$ 286,829
9,499
$ 21,004
PARKING FUND ANALYSIS
1985 - '86 BUDGET
REVENUES MINUS
EXPENSES WERE
TRANSFER IN
MORE THAN BUDGET
TRANSFERRED TO
GENERAL FUND
$ 307,985
$ 5,254
$ 313,239
COURT FINES - PARKING $ 286,829
VPD LEASE
METERS
OTHER VARIANCES
IN ACCOUNTS
$ 21,004
$ 9,449
$ 8,164
TOTAL $ 325,496
EXPENDITURES OVER BUDGET ( $6,353 )
TRANSFER IN
OTHER ADJUSTMENTS
($5,254)
(
$650 )
RESULTANT $ 313,239
FINANCIAL STATEMENTS AND
AUDITORS' REPORT
CITY OF HERMOSA BEACH
JUNE 30, 1986
CONTENTS
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS
COMBINED BALANCE SHEET - ALL FUND TYPES AND
ACCOUNT GROUP
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - ALL GOVERNMENTAL
FUND TYPES
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
ALL GOVERNMENTAL FUND TYPES
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS - FUND BALANCES -
PROPRIETARY FUNDS
STATEMENT OF CHANGES IN FINANCIAL POSITION -
PROPRIETARY FUNDS
NOTES TO FINANCIAL STATEMENTS
SUPPLEMENTAL INFORMATION
AUDITORS' REPORT ON SCHEDULE OF FEDERAL
FINANCIAL ASSISTANCE
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
AUDITORS' REPORT ON INTERNAL CONTROLS
(ACCOUNTING AND ADMINISTRATIVE) - BASED ON A
STUDY AND EVALUATION MADE AS A PART OF AN
EXAMINATION OF THE GENERAL PURPOSE FINANCIAL
STATEMENTS AND THE ADDITIONAL TESTS REQUIRED
BY THE SINGLE AUDIT ACT
AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND
REGULATIONS BASED ON AN EXAMINATION OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH THE STANDARDS FOR AUDIT
ISSUED BY THE GAO
PAGE
3
4
5
6
7
8
9
21
22
23
27
Suite 1100
18300 Von Karman
P.O. Box19585
Irvine, CA 92713-9585
714 553-1600
GrantThornton
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
City Council
City of Hermosa Beach, California
Accountants and
Management Consultants
Member Firm •
Grant Thornton International
We have examined the general purpose financial statements of
the various funds and account group of the City of Hermosa Beach,
California (the City) for the year ended June 30, 1986, listed in
the foregoing contents. Our examination was made in accordance
with generally accepted auditing standards and, accordingly,
included such tests of the accounting records and such other
auditing procedures as we considered necessary in the
circumstances except as explained in the following paragraphs.
As described more fully in Note J, the general purpose
financial statements referred to above do not include the
financial statement of the general fixed assets account group,
which should be included to conform with generally accepted
accounting principles.
The proprietary fund has recorded as expenditures, additions
to property, plant and equipment, which, in our opinion should be
capitalized in order to conform with generally accepted
accounting principles. The effect of this treatment on the
financial position, results of operations and changes in
financial position is not reasonably determinable.
In our opinion, except for the effects of not capitalizing
expenditures for property, plant and equipment in the proprietary
fund as discussed in the preceding paragraph and the omission of
the financial statement described in the second preceding
paragraph, the general purpose financial statements referred to
above present fairly the financial position of the City at
June 30, 1986 and the results of its operations and the changes
in financial position of its proprietary fund types for the year
then ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the
preceding year.
Irvine, California
September 22, 1986 (except for
Note N, as to which the date
is February 25, 1987)
i
•
ASSETS
Cash and short-term investments
(notes A5 and L)
Reimbursable grants
Interest receivable
Other receivables (note E)
Deposits
Amount available in debt service fund
Amount to be provided for long-term debt
Investments in deferred compensation
plan (note I)
Prepaid expenses
Due from other funds (note L)
Total assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable
Workers' compensation claims (note H)
Accrued wages and benefits (note A7)
Accrued expenses (notes A8 and H)
Obligations under capital leases (note D)
Long-term debt (note B)
Deposits (note C)
Liability under deferred compensation
plan (note I)
Contracts payable
Due to other funds (note L)
City of Hermosa Beach
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUP
June 30, 1986
Governmental fund types
General
restated
(note N)
$ 610,626
18,335
369,685
28,000
Special Debt Capital
revenue service projects
Proprietary
fund types
Fiduciary Account group
fund type General
Internal
service Enterprise Agency.
$2,444,876 $165,336 $250,662 $100,000
566,305
33,554 4,274 4,038
74,598
$172,471
8,245
10,163
80,732 - - - - -
572,499 - - - 86,401 -
114,843
long-term
debt
169,610
767,274
$1,679,877 $3,119,333 $169,610 $254,700 $186,401 $190,879 $114,843 $936,884
$ 153,637 $
250,000
253,818
47,175
36,022
86,401
Total liabilities 827,053
COMMITMENTS AND CONTINGENCIES
(notes D, F and H)
FUND EQUITY (notes A8, G, J, M and N)
Contributed capital
Retained earnings
Fund balances
Reserved
�. Unreserved
Designated
Undesignated
Total fund equity
Total liabilities and
• fund equity
14,846
66,831
771,147
852,824
73,457 $
18,897
48,364
572,499
713,217
4,629
2,401,487
2,406,116
$1,679,877 $3,119,333
The accompanying notes are an integral part of this statement.
-4-
- $ - - $ 90,861
- - 40,155
- 86,401 -
169,610
86,401 131,016
- 100,000 -
59,863
- 254,700
169,610 254,700
$169,610 $254,700
100,000 59,863
114,843
-
114,843
$186,401 $190,879 $114,843
124,837
565,626
139,114
107,307
936,884
$936,884
Total
(memorandum only)
(note A4)
$3,743,971
566,305
68,446
454,446
28,000
169,610
767,274
114,843
80,732
658,900
$6,652,527
$ 317,955
374,837
878,496
86,401
139,114
107,307
47,175
114,843
84,386
658,900
2,809,414
100,000
59,863
189,085
321,531
3,172,634
3,843,113
$6,652,527
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS
June 30, 1986
NOTE A - SUMMARY OF ACCOUNTING POLICIES
i 1. Description of Entity
•
•
•
•
1
The City of Hermosa Beach (the City) was incorporated in 1907
in the State of California as a general law city. Included in
the financial entity of the City is the Hermosa Beach Vehicle
Parking District, Hermosa Beach Crossing Guard District,
Hermosa Beach Parking Authority and Hermosa Beach Street
Lighting District. Although these entities are legally
separate from the City, the City has oversight responsibility
and/or direct legislative authority through the City Council.
The financial statements of the South Bay Regional Public
Communication Authority (SBCA) and the Hermosa Beach Civic
Center Building Corporation are not included in these financial
statements. These agencies either determine their own budget
or have their own independently elected governing board and are
not subject to oversight responsibility by the Hermosa Beach
City Council. The City appoints one member of the five member
governing board of SBCA, which determines the SBCA budget.
The accounts of the City are organized and operated on the
basis of funds and account group, each of which is defined as a
fiscal and accounting entity with a self -balancing set of
accounts established for the purpose of carrying on special
activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
2. Description of Funds and Account Group
Governmental Fund Types
General Fund - Used to account for all financial
resources except those required to be accounted for in
another fund.
Special Revenue Funds - Used to account for the
proceeds of specific revenue sources that are legally
restricted to expenditures for special purposes.
•Debt Service Fund - Used to account for the
accumulation of resources for and, the payment of,
general long-term debt principal and interest.
-9-
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued
2. Description of Funds and Account Group - Continued
Governmental Fund Types - Continued
Capital Projects Funds - Used to account for financial
resources used for the construction or acquisition and
improvement of major capital facilities.
Proprietary Fund Types
Enterprise Fund - Used to account for operations of the
Transit and Parking Funds where the intent of the
governing body is that the costs of providing the
services to the general public on a continuing basis be
recovered primarily through user charges.
Internal Service Fund - Used to account for operations
of the Self Insurance Fund. As with the Enterprise
Fund, the Internal Service Fund is expected to be self-
supporting.
Fiduciary Fund Types
Agency Fund - Used to account for assets which in
substance are held by the City as an agent for
individuals, private organizations and other
governmental units.
Account Group
General Long-term Debt Account Group - Used to record
the principal amount of future minimum lease payments
due under lease purchase agreements and to account for
the unmatured portion of installment purchase contracts
and other long-term debt.
•
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued
3. Basis of Accounting
All governmental fund types and agency funds are accounted for
using the modified accrual basis of accounting wherein revenues
are recognized in the accounting period in which they become
measurable and available. Revenues considered susceptible to
accrual included property taxes and revenue sharing.
Expenditures are recognized in the accounting period in which
the liability is incurred, if measurable. An exception to this
rule is unmatured interest on lease obligation and installment
contracts which is recognized when due.
Proprietary funds are maintained on the accrual basis of
accounting wherein revenues are recognized in the accounting
period in which they are earned and expenses are recognized in
the period incurred.
IP 4. Total (memorandum only) columns
•
i
Columns on the accompanying combined financial statements
captioned "Total (memorandum only)" are presented only to
facilitate financial analysis. The data does not present
consolidated financial information.
5. Short-term Investments
A pooled cash and short-term investment system is used for all
funds. Short-term investments include a certificate of deposit
which is carried at acquisition price which approximates fair
market value. The interest rate on the certificate of deposit
was 11.50 percent at June 30, 1986. The cash pooled in the
local agency investment fund was bearing interest of 8.39
percent at June 30, 1986.
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued
IP 6. Budgeting
The City Manager submits a preliminary budget to the City
Council for approval prior to May 15. The City Manager is
authorized to transfer budgeted amounts between object accounts
and departments within the same fund. All appropriations lapse
at the end of the fiscal year to the extent they have not been
expended or encumbered.
Budget information is presented on the same basis as generally
accepted accounting principles for the general, special
revenue, debt service and capital project fund types. Budgeted
revenue and expenditure amounts represent the original budget
modified for adjustments during the year.
7. Compensated Absences
Vacation, sick leave and compensatory time, which the City
expects to pay during fiscal 1986-1987 is recorded as a current
liability of the appropriate fund. The remainder of the
liability is recorded in the general long-term debt account
group.
8. Creation of a New Fund
The General Fund of the City created a Self -Insurance Fund
(Internal Service Fund) and contributed $100,000 of its fund
equity as a residual equity transfer to the newly established
fund at June 30, 1986. This $100,000 approximates the amount
required to be established by agreement with the City's
insurer. The General Fund has also recorded an amount of
$86,401 due to the Internal Service Fund on obligations it has
incurred to June 30, 1986. The Internal Service Fund will be
charging as revenues the various user funds service fees
representing actual self-insurance costs.
s
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE B - LONG-TERM DEBT
Long-term debt consists of the following:
Installment purchase agreement dated January 28,
1982, payable in monthly installments of
$737, collateralized by a Xerox copier, net
of interest of $748 at the rate
of 12.5%
Installment purchase agreement dated January 28,
1986, payable in monthly installments of
$1,463, secured by deed of trust, net of
interest of $69,423 at the rate of 12.5%
Future principal payments are as follows:
Year ending June 30,
$ 9,458
97,849
$107,307
1987 $ 13,756
1988 7,731
1989 7,233
1990 8,191
1991 9,276
Thereafter 61,120
$107,307
NOTE C - DEPOSITS
General fund deposits are received by the City to assure
compliance with City code requirements.
-13-
s
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE D - LEASE OBLIGATIONS
The City has entered into noncancellable, long-term leases for
the acquisition of various equipment. The following is a
schedule of future minimum rental payments under capitalized
leases:
Capitalized
Year ending June 30, leases
1987 $ 61,730
1988 37,472
1989 37,472
1990 30,338
1991 15,171
Net minimum lease payments 182,183
Less amounts representing interest 43,069
s Present value of net minimum lease
payments $139,114
s
s
Rent expense for operating leases for the year was $9,426.
The City records the obligation under capitalized leases as a
liability of the long-term debt group but does not capitalize
the cost of the leased property as a fixed asset. Payments
under capitalized leases are recorded as expenditures at the
time the payment is made; an accounting method which is not in
accordance with generally accepted accounting principles.
-14-
s
s
s
s
s
s
s
s
s
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE E - LEASES RECEIVABLE
The City leases portions of the Hermosa Beach Community Center
to civic and cultural organizations. Included in other
receivables are leases receivable. The future minimum rentals
receivable under noncancellable operating leases are as
follows:
Year ending June 30,
1987 $50,937
1988 19,250
1989 18,480
1990 10,510
$99,177
NOTE F - PUBLIC EMPLOYEE RETIREMENT SYSTEM
Substantially all city employees are members of the State of
California Public Employees' Retirement System. The City
contracts with the system separately for retirement plans for
the public safety employees and for employees not in the public
safety category. The plan is funded by city and employee
contributions.
The contribution rates, as actuarially determined for the year
ended June 30, 1986 were 26.59 percent of compensation for
public safety employees and 11.48 percent of compensation for
other employees.
The City's contribution for the year. was $765,646.
Net assets available for benefits at June 30, 1985, the date of
the latest actuarial valuation were $6,167,369 for public
safety employees and $3,971,408 for nonpublic -safety employees
and the actuarially determined employer unfunded liability was
$3,179,029 and $1,039,223, respectively. The assumed rate of
return used for determining the actuarial values of plan
benefits is 8.5 percent.
-15-
•
•
•
•
•
•
•
•
•
•
•
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE F - PUBLIC EMPLOYEE RETIREMENT SYSTEM - Continued
Actuarial information on the present value of vested
accumulated plan benefits and the present value of nonvested
accumulated plan benefits is not available. The City makes
monthly contributions to the plan equal to the amounts accrued
for pension expense, which provide for retirement of unfunded
actuarial benefits by the year 2011.
NOTE G - FUND EQUITY (Restated - See note N)
The composition of reserved and designated fund equity in the
following funds at June 30, 1986 are as follows:
Designated for
Asset replacement
Capital improvements
Affordable housing
Special Debt Capital
General Revenue Service Projects
Fund Fund Fund Fund
$20,000 $ - $ - $
- - 254,700
46,831 -
66,831 - - 254,700
Reserves for
Capital improvements 9,592
Debt service - - 169,610
Bike path - 4,629
Parking facility 5,254
14,846 4,629 169,610
$81,677 $4,629 $169,610 $254,700
-16-
s
s
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 20, 1986
NOTE H - SELF INSURANCE
The City has adopted a self-insured workers' compensation
program and is self-insured for the first $125,000 of each
claim. At June 30, 1986, $374,837 has been accrued for
workers' compensation representing estimates of amounts to be
paid for reported claims. In addition, the City is self-
insured for the first $100,000 of municipal, general and
automobile liability coverage to the first $1,000,000. The
City has over $10,000,000 in blanket and risk coverage. The
City has entered into contracts with service agents who
supervise and administer the programs. The City believes that
provisions for workers' compensation and general liability
claims are sufficient to cover all claims incurred to the self-
insured limits.
NOTE I - DEFERRED COMPENSATION PLAN
The City has two deferred compensation plans for City employees
under which deduction is made from the employee's gross salary
and deposited into an Agency fund. The City makes no
contribution to the plans. Contributions to the fund are
invested by an outside administrator who, along with the City,
determine the appropriate vehicle for investment. The funds
are distributed at the time an employee retires or otherwise
terminates employment.
NOTE J - FIXED ASSETS
The City has recorded its fixed assets as expenditures of the
current period in the accounting records and therefore a
statement of general fixed assets as required by generally
accepted accounting principles is not included in the
accompanying financial statements. The Proprietary Fund has
also recorded as expenses additions to property, plant and
equipment and therefore the presentation of fixed assets as
required by generally accepted accounting principles is not
presented in the balance sheet.
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE K - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains two Enterprise funds which provide parking
and transit services. Segment information for the year ended
June 30, 1986 is as follows:
Operating revenue
Charges for
services
From other
agencies
Total
Operating expenses
Exchange of
Proposition A funds
Total
Operating income
(loss)
Nonoperating revenue
Other financial
sources (uses)
Transfers in
Transfers out
Net loss
Property, plant
and equipment
(note J)
Depreciation (note J)
Net working capital
Total equity (note J)
Total
Enterprise
Parking Fund Transit Fund funds
$1,980,638
1,980,638
600,388
600,388
1,380,250
39,143
5,254
(1,424,648)
(1)
The City has included fines
fund for the year ended June
$ 11,647
117,352
188,999
208,514
153,847
362,361
(173,362)
13,436
$1,992,285
177,352
2,169,637
808,902
153,847
962,749
1,206,888
52,579
5,254
(200,000) (1,624,648)
(359,926) (359,927)
59,863
59,863
and forfeitures
30, 1986.
with the
59,863
59,863
Parking
V
Y
•
r
City of Hermosa Beach
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1986
NOTE L - POOLED CASH OVERDRAFTS
The City has recorded a receivable (due from other funds) and a
payable (due to other funds) for the overdrawn pooled cash
accounts for the special revenue funds - Community Development
Block Grant and Crossing Guard District as required by
generally accepted accounting principles.
NOTE M - DEFICIT FUND BALANCES
The Community Development Block Grant Fund reduced its deficit
in 1986 of $29,217 from a 1985 balance of $37,416. The
Crossing Guard District Fund developed a deficit in fiscal 1986
aggregating $10,098.. The deficits will be subsequently
eliminated through increased funding and user charges.
NOTE N - RESTATEMENT OF GENERAL FUND EQUITY
In April 1983, the City transferred to and established the then
remaining fund balance of the Affordable Housing Fund as a
designated amount within the general fund equity. The general
fund classifications of unreserved designated have been
increased by $46,831 and the unreserved undesignated decreased
by the same amount to correctly reflect both fund balance
classifications at June 30, 1986.
-19-
SUPPLEMENTAL INFORMATION
•
•
AUDITORS' REPORT ON SCHEDULE OF
FEDERAL FINANCIAL ASSISTANCE
City Council
City of Hermosa Beach, California
We have examined the general purpose financial statements of
the City of Hermosa Beach, California, for the year ended
June 30, 1986, and have issued our report thereon dated
September 22, 1986 (except for Note N, as to which the date is
February 25, 1987). Our examination of such general purpose
financial statements was made in accordance with generally
accepted auditing• standards and the standards for financial and
compliance audits contained in the Standards for Audit of
Governmental Organizations, Programs, Activities, and Functions
issued by the U.S. General Accounting Office, and accordingly,
included such tests of the accounting records and such other
auditing procedures as we considered necessary in the
circumstances.
Our examination was made for the purpose of forming an
opinion on the general purpose financial statements taken as a
whole. The accompanying Schedule of Federal financial assistance
is presented for purposes of additional analysis and is not a
required part of the general purpose financial statements. The
information in that schedule has been subjected to the auditing
procedures applied in the examination of the general purpose
financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general purpose financial
statements taken as a whole.
•
Irvine, California
September 22, 1986 (except for
Note N, as to which the date
is February 25, 1987)
$
$
$
$
$
s
City of Hermosa Beach
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Year ended June 30, 1986
Federal Grantor/ Federal Pass-through
pass-through CFDA Grantor's Disbursements/
Grantor/Program Title Number Number expenditures
U.S. Department of HUD
Direct programs
Community development
block grant -
entitlement B84UC0605 - $413,200
Total U.S.
Department
of HUD
Other Federal Assistance
General revenue
sharing
Total Other
Federal
Assistance
Total Federal
B83UJD060505 - 71,352
484,552
75,276
75,276
41 Assistance $559,828
•
•
AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING
AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION
MADE AS A PART OF AN EXAMINATION OF THE GENERAL
PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL
TESTS REQUIRED BY THE SINGLE AUDIT.ACT
City Council
City of Hermosa Beach, California
We have examined the general purpose financial statements of
the City of Hermosa Beach, California, for the year ended
June 30, 1986, and have issued our report thereon dated
September 22, 1986 (except for Note N, as to which the date is
February 25, 1987). As part of our examination, we made a study
and evaluation of the internal control systems, including
applicable internal administrative controls, used in
administering federal financial assistance programs to the extent
we considered necessary to evaluate the systems as required by
generally accepted auditing standards, the standards for
financial and compliance audits contained in the Standards for
Audit of Governmental Organizations, Programs, Activities, and
Functions, issued by the U.S. General Accounting Office, the
Single Audit Act of 1984, and the provisions of OMB Circular A-
128, Audits of State and Local Governments. For the purpose of
this report, we have classified the significant internal
accounting and administrative controls used in administering
federal financial assistance programs in the following
categories:
Accounting controls
o Cash and investments
o Revenue, receivables, grants and receipts for both
governmental and proprietary fund types, as applicable
• Operating expenditures and debt service expenses, as
applicable, as well as payables and accrued expenses for
goods and services for both governmental and proprietary
funds, as applicable
o Payroll and related liabilities
o Property, equipment and capital expenditures
Administrative controls
General requirements included, as applicable:
o Political activities
o Davis -Bacon Act
o Civil rights
o Cash management
• Relocation assistance and real property acquisition
o Federal financial reports
Specific requirements included, as applicable:
• Types of services
o Eligibility
o Matching level of effort
Reporting
o Cost allocation
o Other special requirements, if any
The management of the City of Hermosa Beach, California is
responsible for establishing and maintaining internal control
systems used in administering federal financial assistance
programs. In fulfilling that responsibility, estimates and
judgments by management are required to assess the expected
benefits and related costs of control procedures. The objectives
of internal control systems used in administering federal
financial assistance programs are to provide management with
reasonable, but not absolute, assurance that, with respect to
federal financial assistance programs, resource use is consistent
with laws, regulations and policies; resources are safeguarded
against waste, loss, and misuse; and reliable data are obtained,
maintained, and fairly disclosed in reports.
Because of inherent limitations in any system of internal
accounting and administrative controls used in administering
federal financial assistance programs, errors or irregularities
may nevertheless occur and not be detected. Also, projection of
any evaluation of the systems to future periods is subject to the
risk that procedures may become inadequate because of changes in
conditions or that the' degree of compliance with the procedures
may deteriorate.
Our study included all of the applicable control categories
listed in the first paragraph. During the year ended June 30,
1986, the City of Hermosa Beach, California expended 100% of its
total federal financial assistance programs. With respect to
internal control systems used in administering major federal
financial assistance programs, our study and evaluation included
considering the types of errors and irregularities that could
occur, determining the internal control procedures that should
prevent or detect such errors and irregularities, determining
whether the necessary procedures are prescribed and are being
followed satisfactorily, and evaluating any weaknesses.
Our study and evaluation was more limited than would be
necessary to express an opinion on the internal control systems
used in administering the federal financial assistance programs
of the City of Hermosa Beach, California. Accordingly, we do not
express an opinion on the internal control systems used in
administering federal financial assistance programs of the City
of Hermosa Beach, California. Further, we do not express an
opinion on the internal control systems used in administering the
major federal financial assistance programs of the City of
Hermosa Beach, California.
Also, our examination, made in accordance with the standards
mentioned in the first paragraph, would not necessarily disclose
material weaknesses in the internal control systems used solely
in administering nonmajor federal financial assistance programs.
However, our study and evaluation disclosed no condition
that we believe to be a material weakness to a federal financial
assistance program that may occur and not be detected within a
timely period.
•
•
These conditions were considered in determining the nature,
timing, and extent of the audit tests to be applied in (1) our
examination of the June 30, 1986 general purpose financial
statements and (2) our examination and review of the City's
compliance with laws and regulations noncompliance with which we
believe could have a material effect on the allowability of
program expenditures for each major federal financial assistance
program and nonmajor federal financial assistance program. This
report does not affect our reports on the general purpose
financial statements and on the City's compliance with laws and
regulations dated September 22, 1986 (except for Note N, as to
which the date is February 25, 1987).
This report is intended solely for the use of management and
the U.S. Department of Housing and Urban Development and should
not be used for any other purpose. This restriction is not
intended to limit the distribution of this report, which, upon
•
acceptance by the City of Hermosa Beach, California, is a matter
of public record.
•
•
•
•
•
•
Irvine, Caliornia
September 22, 1986 (except for
Note N, as to which the date
is February 25, 1987)
-26-
•
•
•
AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND
REGULATIONS BASED ON AN EXAMINATION OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
STANDARDS FOR AUDIT ISSUED BY THE GAO
• City Council
City of Hermosa Beach, California
We have examined the general purpose financial statements of
the City of Hermosa Beach, California, for the year ended
June 30, 1986, and have issued our report thereon dated
• September 22, 1986 (except for Note N, as to which the date is
February 25, 1987). Our examination was made in accordance with
generally accepted auditing standards and the standards for
financial and compliance audits contained in the Standards for
Audit of Governmental Organizations, Programs, Activities, and
Functions, issued by the U. S. General Accounting Office, and
• accordingly included such tests of the accounting records and
such other auditing procedures as we considered necessary in the
circumstances.
The management of the City of Hermosa Beach, California is
responsible for the City's compliance with laws and
• regulations. In connection with our examination referred to
above, we selected and tested transactions and records to
determine the City's compliance with laws and regulations
noncompliance with which could have a material effect on the
general purpose financial statements of the City.
The results of our tests indicate that for the items tested,
the City of Hermosa Beach, California, complied with those
provisions of laws and regulations noncompliance with which could
have a material effect on the general purpose financial
statements. Nothing came to our attention that caused us to
believe that for the items not tested the City of Hermosa Beach,
California, was not in compliance with laws or regulations
•
noncompliance with which could have a material effect on the
City's general purpose financial statements.
•
•
Irvine, California
September 22, 1986 (except for
Note N, as to which the date
is February 25, 1987)
February 26, 1987
Honorable Mayor and Members City Council Meeting
of the City Council of March 2, 1987
1985-86 FINANCIAL STATEMENT
Attached is a revised copy of the 1985-86 Financial Statement.
A designation of the fund balance for Affordable Housing was in-
advertantly left off of the statement. See page 19, Note N. This
designation has appeared in the financial statement since 1982-
83. The revision adds the designation as shown on page 16.
Concur:
-gor T Meyer
ty Manager
Attachments
vc/sl
Viki Copeland
Finance Administrator
Honorable Mayor and Members of
the Hermosa Beach City Council
400 /Ieuary 19, 1987
Special Meeting of
March 2, 1987
STATUS OF CAPITAL IMPROVEMENT PROJECTS
QUARTERLY REPORT -JANUARY, FEBRUARY AND MARCH
Recommendation:
It is recommended that City Council receive and file this report.
Background:
Listed below is the status of all FY 86-87 approved CIP's.
Street and Safety Improvements
CIP 85-102 FAU, Widen Highland Ave., from Longfellow to
35th Street
Status: Proposals for design due January 27, 1987
CIP 85-120 City-wide, Traffic Study
Status Project not approved by the Office of Traffic
Safety -will try again next year.
CIP 85-130 FAU, Hermosa Ave. from 1st St. to 35th Street
Status:
CIP 85-131
Status:
January 22, 1987: Environmental Staff Review
March 3, 1987: Planning Commission
If approved by the Planning Commission, we
anticipate designing CIP 85-102, 85-130, 85-137
as single project.
FAU, Hermosa Avenue at 2nd Street
In design. City Council, on January 13, 1987,
approved Consultant agreement. Workshop was
conducted with Planning Commission, Consultant
and Public Works Dept. on February 3, 1987. A
subsequent workshop was scheduled for March 17,
1987.
CIP 85-132 FAU, Hermosa Avenue at llth Street
Status: Same as CIP 85-131
CIP 85-133 FAU, Hermosa Avenue at Pier Avenue
Status: Same as CIP 85-131
CIP 85-134 FAU, Hermosa Avenue at 13th Street
Status: Same as CIP 85-131
1
CIP 85-136 FAU, Aviation Blvd. at Prospect Avenue
Status: Same as CIP 85-131
CIP 85-137 FAU, Valley/Ardmore at Gould Avenue
Status: Proposals for design due February 27, 1987
CIP 85-138 FAU, Valley/Ardmore at Pier Avenue
Status: Same as CIP 85-131
CIP 85-160 Roadway Improvements & Appurtenances
Status: Project Complete. City Council accepted work as
complete February 10, 1987.
CIP 85-163 City Street Repairs
Status:
Identified repair areas and prepared
specifications. Contract to be awarded February
24, 1987. Anticipated repair work to begin
April/May, 1987.
CIP 86-176 Traffic Control Pre-emption
Status:
Request for proposal sent to engineer.
Anticipate including this with other signal
design work..
Street Lighting Improvements
CIP 85-201 Light Conversion and New Installations
Status: Pacific Coast Highway re -lighting completed.
Herondo - next scheduled street.
CIP 85-202 Hermosa Avenue Lighting
Status:
On October 14, 1986, City Council took action to
expand the scope of the project. Preliminary
design work is scheduled to begin in March, 1987.
CIP 85-203 Pier Lighting
Status:
CIP 85-301
Status:
Researching preventative maintenance of lighting,
including grounding of Pier - preparing lighting
specifications. Spoke with engineers and
contractors - awaiting proposals.
Sewers/Storm Drains
Pier Avenue Storm Drain
Project Complete.
CIP 86-302
Status:
CIP 85-401
CIP 85-4023oL\
CIP 85-403 )a
Status_
09
Sixth Street Storm Drain Project
Plans prepared by L. A. County; project bid
opening on January 7, 1987. Construction to
begin April, 1987. Design of Beach Drive
drainage concern approved by Council on January
27, 1987. Beach Drive design to be presented to
Council March 10, 1987 for approval to construct.
Sewer Replacement, Target Area 2
CIP 84-404
Status:
CIP 86-405
Status:
CIP 85-501
Status:
CIP 85-502
Status:
CIP 85-503
Status:
CIP 86-506
Status:
Bids received 9/19/86 and bids rejected.
Anticipate rebid approval by Council on March 10,
1987 with construction during Summer of 1987
(there should be no inconvenience to Valley
School operation).
Target Area 1, Sanitary Sewer Replacement
Project complete pending approval by Council and
final payment to contractor.
Replacement and Upsizing of Sanitary Sewer Lines
City wide
No work to date - design anticipated to begin
Spring, 1987, pending award of contract for CIP
85-401, 85-402 and 85-403.
Park Improvements
Clark Field Restroom Refurbishing
Project complete and scheduled to be accepted as
complete by Council on February 24, 1987.
Prospect Park Development
Work on this project did not progress as swiftly
as anticipated. Hope to improve progress during
3rd and 4th quarter FY 86-87.
Pier Restroom Refurbishing
Project complete and scheduled to accepted as
complete by Council on February 24, 1987.
Various Park Improvements
New beach play equipment installed in November,
1986.
PCO c6 .rte
- 3 -
Public Buildings and Grounds
CIP 86-601 City Fuel Dispensing Equipment
Status: Currently out to bid. Bids due February 20,
1987.
CIP 86-602 Electrical Upgrade at City Hall
Status: RFP approved by Council on January 13, 1987.
Proposals due March 4, 1987.
CIP 86-603 Cushman Facility
Status: Anticipate to begin Spring, 1987
CIP 86-604 Building Improvements at Various Locations
Status: In progress -majority of minor projects
completed by October, 1986.
CIP 86-605 Parking Lot Paving at 75 -14th Street
Status: Project complete
Res ;ectfully submitted,
Ant ony Antich
Director of Public Works
AA:mv
cip/m
4
Concur:
Honorable Mayor and Members of the
Hermosa Beach City Council
February 17, 1987
Special, Adjourned
City Council Meeting of
March 2, 1987
SCHEDULE FOR 1987 - '88 BUDGET AND
1987 - 1989 CAPITAL IMPROVEMENT PROGRAM CONSIDERATIONS
RECOMMENDATION
It is recommended that the City Council approve the following
calendar:
BACKGROUND
May 1, 1987
May 14, 1987
May 28, 1987
City Manager Proposed Budget
submitted to City Council
7:30 p.m., City Council
Budget Workshop
Only if an additional
workshop is needed,
7:30 p.m., Council Chambers
June 9, 1987 8:00 p.m., Public Hearing
June 23, 1987 Adoption of Budget and
Capital Improvement Program
The municipal code specifies (Section 2-98) that the City Manager
is responsible for preparation and submission of an annual budget
to the City Council; it shall be submitted to you no later than
May 15. By City Council policy this requirement has been May 1.
One public hearing shall be conducted; traditionally at least one
workshop meeting is held. In addition, we have now developed the
capability for a three year Capital Improvement Program.
ANALYSIS
The recommended schedule complies with the legal requirements
and, we believe, allows adequate time for Council consideration
and public input. Additionally, you are invited to modify and/or
expand the calendar timeline.
Alana M. Mastrian
Assistant City Manager
AMM/ld
cc All Department Heads
Honorable Mayor and Members of the
Hermosa Beach City Council
February 26, 1987
Special, Adjourned
City Council Meeting of
March 2, 1987
1986 - 1987 MID -YEAR BUDGET REVIEW
RECOMMENDATIONS:
f‘W It is recommended that the City Council:
1. Receive and File this report;
Mt�2. Adopt the attached revised Recap of Expenditures;
3. Adopt the attached revised Budget Summary By Fund;
4. Adopt the attached revised Revenue Estimates By Fund
5. Adopt a City Council instruction that, for the 1987 - 1988
budget the City Manager should seek to prepare a budget
that includes an amount equal to 3% of the recommended
General Fund operating budget in a Contingency Fund.
BACKGROUND
This is the sixth formal mid -year budget review for the City of
Hermosa Beach. It's purpose is to look at the overall budget
after one-half of the fiscal year and make recommendations for
necessary modifications.
Those departments which have expended more than 50% in the first
half of the fiscal year are:
PERCENTAGE DEPARTMENT PERCENTAGE DEPARTMENT
65.9 Insurance 58.9 Fire
Other than for the Fire and Insurance Departments, it appears
that all other departments will stay within budget for the
remainder of the fiscal year. The recommended adjustments are:
Fire + $ 101,000 Insurance + $ 43,082
i
ANALYSIS
At the mid -point in the fiscal year we have spent 46.87 of the
budget allocations and received 52.7% of the anticipated General
Fund revenue. At this point last year, expenditures were 48% and
income was 57.7%.
As reported in the City Treasurer's Report for December 31, 1986,
the General Fund balance was $ 1,201,284; last year at that same
time the balance was S 1,074,748 and the year prior to that there
was a deficit of S 568,143 at the mid -year. Clearly then the
tide has been turned and we are edging into financial solvency.
This is a cumulative effect from prudent management, fiscal
constraints and aggressively seeking appropriate revenues by
recovering costs reasonably borne for services provided.
The Budget Summary By Fund, as currently enacted anticipated a
June 30, 1987 all Fund balance of S $ 2,309,272. We now
anticipate that the ending balance will be $ 3,194,611. Overall
this is a significant improvement in our financial position. It
does not, however, mean that we are "out of the woods". By way
of reference, the actual year end all Fund balance amount for
June 30, 1978 was $ 4,419,652.
In looking specifically at the General Fund, it would be prudent
to have a contingency Fund of at least 3% of the operating
budget. Such a determination is a matter of legislative policy.
In recent years we have had no Contingency Fund. However, this
is a common practice among the South Bay cities.
Were that done for this fiscal year it would amount to
approximately $ 230,000. Taking into account the revenue and
expenditure estimates contained in this report and the several
appropriation recommendations, the remaining unappropriated
monies as of June 30, 1987 is estimated to be $ 73,038. What it
will actually be is of course dependent on revenues and
expenditures for the remainder of the year.
REVENUES
The attached revision to the Revenues indicates a net increase of
S 264,797. As can be seen from the listing this is caused by a
number of adjustments. Predominantly it is the result of a surge
in building/development related income. It is not anticipated
that this will be re -occurring. On the other hand, sales tax is
estimated to be less than we originally estimated.
EXPENDITURES
Expenditures are generally within guidelines. The operating
departments are doing a good job. However, some adjustments are
necessary:
1. Fire Department salaries will be $ 101,000 more
than budget due to overtime, FLSA etc.;
- 2
2. Prospective Expenditure monies spent during the
first six months aggregated $ 87,164. Only S 12,836
remains. It would appear prudent that an additional
$ 40,000 be allocated;
3. Monies were not allocated for the current year ATSF
property taxes; the bills have been received so
$ 12,000 is required;
4. Our Unemployment Insurance costs are a function of
payroll costs. This is our first year under this
formula; in the first half of the year almost all
of the budget monies have been expended. An add-
itional $ 37,824 is required;
5. We are now required to pay Medicare costs on new
hires only. This is a part of the federal govern-
ments way of "shedding" their financial burden. It
was difficult to estimate this cost; we now require
an additional $ 5,258 to cover the remainder of the
fiscal year;
6. As a matter of fiscal prudence it would be good for
us to reduce our debts that involve interest payments.
Since 1980 this sort of debt has been growing since
we lacked the financial wherewithal to pay cash for
our various capital needs. We can now begin to reverse
that process. In examining these debts it appears
that the first of these ought to be paying off the
mortgage on the Bard Street property acquisition. We
owe $ 96,893; paying it off would preclude about
$ 40,000 in interest payments; it can be done without
any penalty payments. It is therefore recommended.
7. Rejoining AWWS seems prudent, see the attached
memorandum from the Director of Public Safety. We
can afford (S 8,750) to do so and it will be beneficial
to dealing with criminal violators.
8. Earlier in the fiscal year the City Council, as a matter
of policy, instructed us to examine how we might return
to a formal program of crime prevention. We have done
so, see the attached memorandum from Public Safety
Director Wisniewski. The cost is minimal ($ 5,000); it
is recommended.
FUNDS
Several adjustments are needed. Specifically:
1. On the basis that UUT'income is greater than originally
anticipated, increase the sewer allocation, transferring
from General to the Sewer Fund $ 99,005. Our sewer
needs are immense; this will be an assist toward cap-
italizing replacement as already prioritized;
2. $ 44,833 needs to be transfered from the General Fund
to the Transit Fund to render the balance consistent
with the audited Prop A balance.
3. The Auditors have recommended elimination of the Debt
Service Fund since payments are not being made from
the Fund. Staff concurs. It is recommended that a
transfer from Debt Service to General Fund in the
amount of $ 65,005 be made and then designate that
amount as a Reserve for that purpose;
4. The Auditors have recommended elimination of the Capital
Improvement Fund. Staff concurrs. In 1979 the Capital
Improvement Funds had a combined balance of $ 577,532.
It is therefore recommended that $ 522,706 be so
designated;
5. The Asset Replacement concept was formally adopted as a
part of the MSI report whereby the Council imposed
"costs reasonably borne" for various services. As a
part of that program we are obligated to set aside funds
for asset replacement. To date we've only reserved
$ 20,000. It is recommended that an additional
$ 100,000 be so designated;
6. Monies need to be formally set aside for the acquisition
of surplus school property at the former Prospect School
site. As envisioned by staff $ 250,000 can be obtained
as follows: $ 100,000 from the already designated Open
Space restricted monies (Oil fee income), $ 50,000 from
the Park & Recreation Facilities Fund and $ 100,000 from
the General Fund. While the acquisition is not yet
agreed to by the seller, it would be prudent for us to
encumber funds to match what we have offered. It is
therefore recommended.
7. Increase the Insurance Fund reserve by $ 150,000.
This is necessary to have an adequate Retention for
our Liability, Property and Workers' Compensation
policies.
8. Transfer from the General Fund to eliminate the deficit
in the Community Development Block Grant Fund
($ 21,314). In a prior year a transfer from the General
Revenue Sharing Fund for a CDBG project was not made,
thereby creating a deficit.
REMAINDER OF THE BUDGET YEAR
The focus will, of course, be to ensure that the authorized tasks
and projects are completed within the adopted budget. In
addition a priority will be given to the following:
1. Completion of all authorized Capital Improvement
Projects;
4
2. Obtainng back our`Building Permit authority from the
California Coastal Commission;
3. Analyzing the pros and cons of a City Charter; and
4. Moving ahead with the City's hydrocarbon recovery
program.
CONCLUSION
Preparation of this document was possible only because of the
extensive efforts by all members of the management team. I am
most appreciative of those efforts. Through their diligence we
have prudently expended monies, met the Council's adopted
objectives for the first half of the year and have now carefully
commenced to realize a fiscal solvency not seen here in many a
year.
4I"L-
;ory Meyer
Manager
GTM/ld
Attachments
cc All Department Heads
City of Hermosa Beach
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended June 30, 1986
Revenues (notes A3, A5 and E)
Property taxes
Other taxes
Licenses and permits
Fines and forefeitures
Use of money and property
From other agencies
Charges for services
Other
Interest
Expenditures (notes A3, A7, B, D, H, J and M)
Legislative and legal
General government
Public safety
Public health and welfare
Community development
Culture and recreation
Public works
Parking
Sanitation
Capital expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Excess (deficiency) of reveues and other
sources over expenditures and other uses
Fund balance at beginning of year
Residual equity transfer (note A8)
Fund balance at end of year (notes G, J and M)
Governmental fund types
General
Special Debt
revenue service
$1,938,741 $ 481,106 $
2,858,170 540,:372
305,714 -
194,970
265,050
752,928 654,092
370,917
13,600
52,910 130,776 18,705
6,753,000
378,501
2,184,245
3,410,768
70,790 73,164
321,701
369,802
490,823
217,795
7,444,425 635,569
1,806,346 18,705
411,755
150,650
720,942
7,444,425 1,356,511
(691,425) 449,835
2,066,883
(443,869)
1,623,014
1,000,179
(903,799)
96;380
931,589 546,215
21,235 1,859,901
(100,000)
$ 852,824 $2,406,116
The accompanying notes are an integral part of this statement.
-5-
18,705
(100,000)
(100,000)
(81,295)
250,905
Capital
projects
31,546
31,546
31,546
31,546
223,154
$169,610 $254,700
Total
(memorandum only)
(note A4)
$2,419,847
3,398,542
305,714
194,970
265,050
1,407,020
370,917
13,600
233,937
8,609,597
378,501
2,184,245
3,410,768
143,954
321,701
369,802
902,578
150,650
217,795
8,079,994
720,942
8,800,936
(191,339)
3,067,062
(1,447,668)
1,619,394
1,428,055
2,355,195
(100,000)
$3,683,250
City of Hermosa Beach
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES
Budget
Year ended June 30, 1986
General fund Special revenue funds
Variance Variance
favorable favorable
Actual (unfavorable) Budget Actual (unfavorable)
Revenues (notes A3, A5, A6 and E)
Property taxes $1,909,992 $1,938,741 $ 28,749 $ 576,453 $ 481,106 $ (95,347)
Other taxes 2,675,710 2,858,170 182,460 378,571 540,372 161,801
Licenses and permits 237,436 305,714 68,278 -
- -
Fines and forfeitures 185,000 194,970 9,970 -
-
Use of money and property 269,875 265,050 (4,825> - -
From other agencies 659,692 752,928 93,236 1,797,266 654,092 (1,143,174)
AP
Charges for services 305,462 370;917 65,455 - - -_
Other 17,500 13,600 (3,900)
Interest 25,000 52,910 27,910 124,871 130,776 5,905
6,285,667 6,753,000 467,333 2,877,161 1,806,346 (1,070,815)
Expenditures
(notes A3, A6, A7, B, D, H,
J and M) - - -
Legislative and legal 348,609 378,501 (29,892) - - -
General government 2,321,026 2,184,245 136,781-
Public safety 3,435,446 3,410,768 24,678 - -
Public health and welfare 70,285 70,790 (505) 58,000 73,164 (15,164) t
Community development 373,373 321,701 51,672 - -
Culture and recreation 378,917 369,802 9,115 - -
Public works 486,914 .490,823 (3,909) 501,302 411,755 89,547
Parking - - - 137,451 150,650 (13,199)
Sanitation 216,028 217,795 (1,767)
7,630,598 7,444,425 186,173 696,753 635,569 61,184
Capital expenditures - - 2,336,027 720,942 1,615,085 0
7,630,598 7,444,425 186,173 3,032,780 1,356,511 1,676,269
•
•
Excess (deficiency) of revenues
over expenditures (1,344,931) (691,425) 653,506 (155,619) 449,835 605,454
Other financing sources (uses)
Operating transfers in
Operating transfers out
Excess (deficiency) of revenues
and other sources over
expenditures and other uses
Fund balance at beginning of year
Residual equity transfer
Fund balance at end of year
1,904,681 2,066,883
(468,387) (443,869)
1,436,294 1,623,014
$ 91,363
931,589
21,235
(100,000)
162,202 686,654 1,000,179 313,525 0
24,518 (830,900) (903,799) (72,899)
186,720 (144,246) 96,380 240,626
$ 840,226 $ (299,865)
546,215 $ 846,080
1,859,901
$ 852,824 $2,406,116
The accompanying notes are an integral part of this statement.
- 6-
=
0
•
Debt service fund
Budget
$
5,862
5,862
5,862
Capital projects funds
Variance
favorable
Actual (unfavorable) Budget
$
18,705
18,705
18,705
(100,000) (100,000)
(100,000) (100,000)
$(94,138) (81,295)
250,905
$
12,843
12,843
12,843
$ 12,843
$
50,000
50,000
50,000
$ 50,000
Variance
favorable
Actual (unfavorable)
31,546
31,546
(18,454)
(18,454)
31,546 (18,454)
31,546 $(18,454)
223,154
• $169,610 $254,700
Totals
Budget
$ 2,486,445
3,054,281
237,436
185,000
269,875
2,456,958
305,462
17,500
205,733
9,218,690
348,609
2,321,026
3,435,446
128,285
373,373
378,917
988,216
137,451
216,028
8,327,351
2,336,027
10,663,378
(1,444,688)
2,591,335
(1,399,287)
1,192,048
$ (252,640)
(memorandum only)
Variance
favorable
Actual (unfavorable)
$2,419,847
3,398,542
305,714
194,970
265,050
1,407,020
370,917
13,600
233,937
8,609,597
$ (66,598)
344,261
68,278
9,970
(4,825)
(1,049,938)
65,455
(3,900)
28,204
(609,093)
378,501 (29,892)
2,184,245 136,781
3,410,768 24,678
143,954 (15,669)
321,701 51,672
369,802 9,115
902,578 85,638
150,650 (13,199)
217,795 (1,767)
8,079,994 247,357
720,942 1,615,085
8,800,936 1,862,442
(191,339) 1,253,349
3,067,062
(1,447,668)
1,619,394
475,727
(48,381)
427,346
1,428,055 $1,680,695
2,355,195
(100,000)
$3,683,250
_
City of Hermosa Beach
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS
FUND BALANCES - PROPRIETARY FUNDS
Year ended June 30, 1986
Internal
Service Total
Fund Enterprise (Memorandum only)
(note A8) Fund (note K) (note A4)
Operating revenue
(notes A2, A3 and H)
Charges for services $86,401 $1,992,285 $2,078,686
From other agencies - 177,352 177,352
86,401 2,169,637 2,256,038
Operating expenses
(notes A2, A3, A7, F,
H, I and J)
Personal services - 450,438 450,438
Contractual services - 381,555 381,555
Supplies - 35,946 35,946
Repairs and
maintenance - 22,521 22,521
Capital expenditures - 56,326 56,326
Other 86,401 15,963 102,364
86,401 962,749 1,049,150
Operating income - 1,206,888 1,206,888
Nonoperating revenue -
interest - 52,579 52,579
Income before
transfers - 1,259,467 1,259,467
Other financing sources
(uses)
Operating transfers in - 5,254 5,254
Operating transfers out - (1,624,648) (1,624,648)
- (1,619,394) (1,619,394)
Net loss - (359,927) (359,927)
Retained earnings at
beginning of year - 419,790 419,790
Retained earnings at
end of year
$ - $ 59,863
$ 59,863
The accompanying notes are an integral part of this statement.
-7-
i
City of Hermosa Beach
STATEMENT OF CHANGES IN FINANCIAL POSITION
PROPRIETARY FUNDS
Year ended June 30, 1986
Sources of working capital
Income before operating transfers
Transfers in
Residual equity transfer - contributed capital (note A8)
Internal
Service Total
Fund Enterprise (Memorandum only)
(note A8) Fund (note K) (note A4)
$ - $1,259,467
5,254
100,000
Total sources 100,000
Applications of working capital
• Transfers out
t
•
•
•
•
$1,259,467
5,254
100,000
1,264,721 1,364,721
1,624,648
Increase (decrease) in working capital $100,000 $ (359,927)
Changes in components of working capital
Increase (decrease) in current assets
Cash and short-term investments (notes A5 and L)
Interest receivable
Other receivables
Due from other funds
Increase in current liabilities
Accounts payable
Accrued wages and benefits
Accrued expenses (note H)
INCREASE (DECREASE) IN WORKING CAPITAL
The accompanying notes are an integral part of this statement.
-8-
$100,000
86,401
1,624,648
$ (259,927)
$ (314,486) $ (214,486)
(84) (84).
(6,251) (6,251)
- 86,401
186,401 (320,821) (134,420)
- (33,210) (33,210)
- (5,896) (5,896)
(86,401) - (86,401)
(86,401) (39,106) (125,507)
$100,000 $ (359,927) $ (259,927)