1. PPD 541 Public Finance Spring 2011
Erika Brooks Juan Cabral Eddie Martinez Milton McKinnon Frank Wasko
PPD 541 Public Finance
Spring 2011

2. Background
Incorporated in 1917 • 5 Square Miles • 40,000 Residents • 1 Mile from Beach • 5 Member City Council • Light Rail • Culver City Unified School District • 5 Elementary Schools • 1 Middle School • 2 High Schools • West LA College • Antioch University • Pepperdine University

4. Median Household Income
Major Employers #
Employer
# of Employees 1
Sony Pictures Entertainment
2,020 2
Westfield Culver City
1,500 3
Brotman Medical Center
900 4
Symantec
800
Median Household Income
5.5% of Families and 8.6% of the Population are below the Poverty Line.

5. Population by Race Population by Age
38,816 People • 16,611 Households • 9,518 Families •
Median age is 39 • For every 100 females there are 87.5 males

6. Median Home Value Education
Average Temperature: 70° • Warmest month is August •
Coolest month is December • February is the wettest month

7. City Government Total City Workers: 649 Retirement System: PERS
55 Years – Misc. Employee
55 Years – Fire Department
50 Years – Police Department
Charter City: 1947

8. Revenue Current Revenue Streams Breakdown Local Taxes $49.8M
Charges for Services $55.6M
Fines & Forfeits $4M
License & Permits $2.6M
Intergovernmental $28M
Other $14M
28M
2.6M
49.8M 4M
55M

9. Expenditures Breakdown Deficit – 8 Milliion
Strategic Plan to Reduce Expenditures
11.6M
Salaries & Benefits $88.6M
Ops & Maintenance $56.4M
Capital Outlay $11.6M
Debt Service $2M
55.4M
88.6M

10. Fund Balances
Review the “General Fund Changes In Fund Balance Statement.”
Review whether the budget is balanced.
Review whether revenues exceed expenditures.
Determine how reserves will be impacted.
Determine the unrestricted balances.
Determine the total reserves.

11. Challenges
CalPERS retirement system increases: Losses must be recouped
Safety employees
Miscellaneous employees
Making these cuts will increase the General Fund to an estimated figure of $3.9 million
3.9 Million to be recouped in FY

12. Challenges Cont. Recognize the severity of the structural deficit
Recognize the other long term financial issues that must be addressed in the future
Propose a budget that will bring current operating cost in line with current resources

13. Proposed Solutions
Implement a two year action plan to reduce expenditures
First year: Workforce reduction of 60 positions
Second year: Address remaining deficit through negotiations or further workforce reduction, or combination of both

14. Proposed Solutions Miscellaneous:
FY: (12.9%) • FY: (13.60%) •
FY (15.84%) • FY (18.22%) •
FY (18.49%)
Safety:
FY: (26.52%) • FY: (29.60%) •
FY: (34.43%) • FY: (40.45%) •
FY: (41.14%)
Questions