CC SR 20160621 H - Appropriation Limit for FY16-17RANCHO PALOS VERDES CITY COUNCIL
AGENDA REPORT
AGENDA DESCRIPTION:
MEETING DATE: 06/21/2016
AGENDA HEADING: Consent Calendar
Consideration and possible action to adopt a resolution establishing the City's
Appropriation Limit for FY16-17.
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2016-_ establishing the City's Appropriation Limit for
FY16-17.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Accounting Supervisor U1Z
REVIEWED BY: Deborah Cullen, Director of Finance bE --
APPROVED BY: Doug Willmore, City Manager.-�`,
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. 2016-_, a Resolution of the City Council of the City of
Rancho Palos Verdes establishing the Fiscal Year 2016-2017
Appropriation Limit for the City of Rancho Palos Verdes (Page A-1)
B. Gann Limit calculation (Page B-1)
BACKGROUND AND DISCUSSION:
The Gann Initiative of 1979 amended the State Constitution to require cities to adopt an
annual limit on the amount of tax revenue that can be appropriated for spending each
fiscal year. In coordination with the adoption of the annual budget, the City follows
statewide guidelines to calculate the Gann appropriation limit. The amount is adjusted
each year using inflationary and population growth statistics provided by the State
Department of Finance.
The adoption of Resolution No. 2016-_ will formalize the City's FY16-17 appropriation
limit of $27,740,597 (Attachment B). Based upon the proposed budget of $22,903,240
for proceeds of taxes, the City is in compliance with the Gann limit, falling below 83% of
the appropriation limit.
1
RESOLUTION NO. 2016-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ESTABLISHING THE FISCAL YEAR
2016-2017 APPROPRIATION LIMIT FOR THE CITY OF RANCHO
PALOS VERDES
WHEREAS, the City of Rancho Palos Verdes has established its Appropriation Limit of
$27,740,597 (Twenty -Seven Million Seven Hundred Forty Thousand and Five Hundred
Ninety -Seven Dollars) for FY 2016-2017; and
WHEREAS, by a letter, dated May 2016, the California Department of Finance has
provided the following factors relevant to the calculation of the Appropriation Limit for FY
2016-2017:
California Per Capita Personal Income change:
5.37% (Five Point Thirty -Seven Percent)
County of Los Angeles Population Adjustment:
0.85% (Zero Point Eighty -Five Percent)
WHEREAS, the City Finance staff has calculated the Appropriation Limit for FY 2016-
2017 based upon the foregoing factors and the provisions of Article XIII B of the Constitution
of the State of California. The working papers supporting the calculation are maintained in the
files of the Finance department within the City.
WHEREAS, the Appropriation Limit for the City of Rancho Palos Verdes establishes
the ceiling for which proceeds from taxes can be appropriated during FY 2016-2017.
NOW BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
Section 1: The Appropriation Limit of the City of Rancho Palos Verdes is $27,740,597
(Twenty -Seven Million Seven Hundred Forty Thousand and Five Hundred Ninety -Seven
Dollars) for FY 2016-2017.
Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the amount
of $27,740,597 (Twenty -Seven Million Seven -Hundred Forty Thousand and Five Hundred
Ninety -Seven Dollars) exceeds the proceeds from taxes, calculated in the amount of
$22,903,240 (Twenty -Two Million, Nine Hundred Three Thousand and Two Hundred Forty
Dollars) for FY 2016-2017. Therefore, the City of Rancho Palos Verdes shall be in
compliance with the provisions of Article XIII B of the Constitution of the State of California.
Section 3: The City Clerk shall certify to the passage of this resolution.
A-1
PASSED, APPROVED AND ADOPTED THE 21ST DAY OF JUNE 2016.
MAYOR
ATTEST:
CITY CLERK
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2016-_ was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on June 21, 2016.
CITY CLERK
A-2
City of Rancho Palos Verdes
Gann Limit Calculation
Ten Years
Fiscal
Year
Resolution
No.
Califronia
per Capita
LA
Population
Change
Factor
Appropriation
Limit
FY 16-17
Proposed Budget
Proceeds of Taxes
% of Budget
to Limit
2016-17
16-xx
5.37
0.85
1.06266
$27,740,597
$22,903,240
83%
2015-16
15-45
3.82
0.82
1.04671
$26,104,866
$22,430,257
86%
2014-15
14-36
-0.23
0.78
1.00548
$24,939,845
$21,366,388
86%
2013-14
13-35
5.12
0.69
1.05845
$24,803,869
$20,069,270
81%
2012-13
12-41
3.77
0.42
1.04206
$23,434,071
$19,123,734
82%
2011-12
11-37
2.51
0.38
1.02900
$22,488,252
$18,439,843
82%
2010-11
10-44
-2.54
0.83
0.98269
$21,854,570
$16,946,217
78%
2009-10
09-39
0.62
0.9
1.01526
$22,239,555
$14,598,734
66%
2008-09
08-60
4.29
0.86
1.05187
$21,905,372
$15,116,425
69%
2007-08
07-74
4.42
0.72
1.05172
$20,825,191
$14,345,175
69%
2006-07
06-39
3.96
0.78
1.04771
$19,801,112
$12,984,672
66%
95
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2016-2017
GENERAL FUND
NON
PROCEEDS
PROCEEDS
OF TAXES
OF TAXES
TOTAL
TAXES
Property tax
7,251,000
7,251,000
Property tax In -Lieu of VLF Revenues
4,430,600
4,430,600
Property tax In -Lieu of Sales Tax
0
0
Property tax Redev Tax Trust
27,000
27,000
Sales and use tax
2,122,800
2,122,800
Property transfer tax
406,900
406,900
Business license tax/Application processing
794,500
794,500
Transient occupancy tax
5,495,000
5,495,000
Franchise tax
2,127,100
2,127,100
Utility users tax
1,981,900
1,981,900
Golf Tax
350,500
350,500
LICENSES AND PERMITS
Planning permits
436,600
436,600
Bldg and safety permits & geology fees
1,575,900
1,575,900
Right of way & parking permits
103,300
103,300
Film permits
60,000
60,000
Massage permits
0
0
Animal control fees
40,000
40,000
FINES AND FOREFEITURES
Misc court fines
107,000
107,000
False alarm fines
5,000
5,000
Tow fees
9,500
9,500
USE OF MONEY AND PROPERTY
Property & Monopole Leases
181,900
181,900
Facility rentals - PVIC
200,000
200,000
Facility rentals - Other
80,300
80,300
Parking lot fees
200,000
200,000
PVIC gift shop
120,000
120,000
Interest earnings
43,040
10,760
53,800
CHARGES FOR SERVICES
Engineering fees
9,000
9,000
Recreation fees
11,500
11,500
Sale of Signs/Services
1,900
1,900
Administration of Successor Agency
60,000
60,000
Interfund charges for services
155,800
155,800
REVENUES FROM OTHER AGENCIES
Motor vehicle license fees
0
0
Grant income
0
0
OTHER REVENUES
Donations
27,500
27,500
Repayment of City Loan to former RDA
177,200
177,200
Other misc revenues
10,500
10,500
Total revenues
22,903,240
5,710,760
28,614,000
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2016-2017
PROCEEDS OF TAXES 22,903,240
GANN LIMIT 27,740,597
OF GANN LIMIT 83%
NON
PROCEEDS PROCEEDS
Total general fund revenue
22,903,240 I 5,710,760
28,614,000
NON
PROCEEDS PROCEEDS
ALL FUNDS
OF TAXES OF TAXES
TOTAL
GENERAL FUND
22,903,240 5,710,760
28,614,000
Gas Tax
842,600
842,600
1972 ACT
260,200
260,200
EL PRADO LIGHTING DISTRICT
2,300
2,300
1911 ACT
555,600
555,600
BEAUTIFICATION
900
900
WASTE REDUCTION
208,100
208,100
AIR QUALITY MANAGEMENT
50,300
50,300
PROPOSITION C
649,100
649,100
PROPOSITION A
781,300
781,300
PUBLIC SAFETY GRANTS
100,200
100,200
MEASURE R
489,600
489,600
HABITAT RESTORATION
4,900
4,900
SUBREGION 1 MAINTENANCE
2,700
2,700
MEASURE A MAINTENANCE & CAPITAL
90,000
90,000
ABALONE COVE SEWER DISTRICT
55,400
55,400
GINSBERG CULTURAL ARTS BLDG
300
300
DONOR RESTRICTED DONATIONS
2,800
2,800
IA - PORTUGUESE BEND
1,100
1,100
CDBG
192,400
192,400
CIP
1,054,400
1,054,400
QUIMBY
5,900
5,900
LOW -MOD INCOME HOUSING
44,400
44,400
AFFORDABLE HOUSING IN LIEU
1,900
1,900
EET
23,200
23,200
BICYCLE & PEDESTRIAN ACCESS
82,500
82,500
WATER QUALITY
8,000
8,000
EQUIPMENT REPLACEMENT
132,000
132,000
IA - ABALONE COVE
3,400
3,400
EMPLOYEE BENEFITS
0
0
RECREATION IMPROVEMENTS DONATIONS
0
0
TOTAL ALL FUNDS
22,903,240 11,356,260
34,259,500
PROCEEDS OF TAXES 22,903,240
GANN LIMIT 27,740,597
OF GANN LIMIT 83%
ANT O�
aQ i I^ Z
O �
K DEPARTMENT OF
°A�,FORN P F I N AN C E
OFFICE OF THE DIRECTOR
May 2016
Dear Fiscal Officer:
EDMUND G. BROWN JR. - GOVERNOR
STATE CAPITOL 0 ROOM 1 1 45 ■ SACRAMENTO CA ■ 95B 1 4-4998 0 WWW.DOF.CA.GOV
Subject: Price Factor and Population Information
Appropriations Limit
The California Revenue and Taxation Code, section 2227, requires the Department of Finance
(Finance) to transmit an estimate of the percentage change in population to local governments.
Each local jurisdiction must use their percentage change in population factor for January 1, 2016,
in conjunction with a change in the cost of living, or price factor, to calculate their appropriations
limit for fiscal year 2016-17. Attachment A provides the change in California's per capita personal
income and an example for utilizing the price factor and population percentage change factor to
calculate the 2016-17 appropriations limit. Attachment B provides the city and unincorporated
county population percentage change. Attachment C provides the population percentage change
for counties and their summed incorporated areas. The population percentage change data
excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. The Revenue and Taxation
Code, section 2228 provides additional information regarding the appropriations limit.
Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the
appropriations limit calculation mandate. The Code and the California Constitution can be
accessed at the following website: http://Ieginfo.legislature.ca.gov/faces/codes.xhtm1.
Special districts required by law to calculate their appropriations limit must present the calculation
as part of their annual audit. Any questions special districts have on this requirement should be
directed to their county, district legal counsel, or the law itself. No state agency reviews the local
appropriations limits.
Population Certification
The population certification program applies only to cities and counties. Revenue and Taxation
Code section 11005.6 mandates Finance to automatically certify any population estimate that
exceeds the current certified population with the State Controller's Office. Finance will certify
the higher estimate to the State Controller by June 1, 2016.
Please Note: Prior year's city population estimates may be revised.
If you have any questions regarding this data, please contact the Demographic Research Unit at
(916) 323-4086.
MICHAEL COHEN
Director
By:
AMY COSTA
Chief Deputy Director
Attachment
May 2016
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living
factor to compute their appropriation limit by a vote of their governing body. The cost
of living factor provided here is per capita personal income. If the percentage
change in per capita personal income is selected, the percentage change to be used
in setting the fiscal year 2016-17 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2016-17 5.37
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2016-17
appropriation limit.
2016-17:
Per Capita Cost of Living Change = 5.37 percent
Population Change = 0.90 percent
Per Capita Cost of Living converted to a ratio:
Population converted to a ratio:
Calculation of factor for FY 2016-17:
5.37 + 100 = 1.0537
100
0.90 + 100 = 1.0090
100
1.0537 x 1.0090 = 1.0632
AM
Fiscal Year 2016-17
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January 1, 2016 and Total Population, January 1, 2016
Total
County Percent Change --- Population Minus Exclusions --- Population
City 2015-2016 1-1-15 1-1-16 1-1-2016
Los Angeles
Agoura Hills
0.68
21,068
21,211
21,211
Alhambra
0.91
85,999
86,782
86,782
Arcadia
0.88
56,550
57,050
57,050
Artesia
0.42
16,726
16,797
16,883
Avalon
0.16
3,672
3,678
3,678
Azusa
1.07
48,962
49,485
49,485
Baldwin Park
0.27
74,534
74,738
74,738
Bell
0.42
36,562
36,716
36,716
Bellflower
0.27
76,154
76,363
76,363
Bell Gardens
0.45
42,759
42,952
42,952
Beverly Hills
0.44
34,610
34,763
34,763
Bradbury
1.26
1,109
1,123
1,123
Burbank
0.28
104,815
105,110
105,110
Calabasas
0.41
24,164
24,263
24,263
Carson
0.54
93,489
93,993
93,993
Cerritos
0.42
49,205
49,412
49,412
Claremont
0.54
36,022
36,218
36,218
Commerce
0.52
13,059
13,127
13,127
Compton
0.54
100,685
101,226
101,226
Covina
0.43
49,078
49,291
49,291
Cudahy
0.46
24,490
24,602
24,602
Culver City
0.60
40,207
40,448
40,448
Diamond Bar
1.26
56,371
57,081
57,081
Downey
0.43
113,691
114,181
114,181
Duarte
0.99
21,960
22,177
22,177
EI Monte
0.80
112,977
113,885
113,885
EI Segundo
0.30
16,596
16,646
16,646
Gardena
0.73
60,346
60,785
60,785
Glendale
1.03
199,620
201,668
201,668
Glendora
0.58
52,060
52,362
52,362
Hawaiian Gardens
0.59
14,838
14,926
14,926
Hawthorne
0.56
87,517
88,003
88,003
Hermosa Beach
0.15
19,771
19,801
19,801
Hidden Hills
0.65
1,860
1,872
1,872
Huntington Park
0.38
59,493
59,718
59,718
Industry
0.23
440
441
441
Inglewood
0.59
115,966
116,648
116,648
Irwindale
-1.67
1,439
1,415
1,415
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Fiscal Year 2016-17
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January 1, 2016 and Total Population, January 1, 2016
Total
County
Percent Change
--- Population Minus Exclusions ---
Population
City
2015-2016
1-1-15
1-1-16
1-1-2016
La Canada Flintridge
0.45
20,464
20,556
20,556
La Habra Heights
0.61
5,426
5,459
5,459
Lakewood
0.36
78,187
78,471
78,471
La Mirada
0.38
49,452
49,639
49,639
Lancaster
0.43
151,695
152,349
157,094
La Puente
0.37
40,373
40,521
40,521
La Verne
0.52
33,027
33,200
33,200
Lawndale
0.39
33,365
33,496
33,496
Lomita
0.29
20,232
20,290
20,290
Long Beach
0.66
481,719
484,879
484,958
Los Angeles
1.27
3,977,541
4,028,043
4,030,904
Lynwood
0.20
72,358
72,505
72,505
Malibu
0.50
12,643
12,706
12,706
Manhattan Beach
0.36
35,172
35,297
35,297
Maywood
0.44
28,094
28,219
28,219
Monrovia
0.74
37,254
37,531
37,531
Montebello
0.48
63,620
63,924
63,924
Monterey Park
0.34
61,137
61,346
61,346
Norwalk
0.27
104,278
104,562
105,292
Palmdale
0.60
159,112
160,072
160,072
Palos Verdes Estates
0.42
13,655
13,712
13,712
Paramount
0.46
56,143
56,400
56,400
Pasadena
0.89
139,781
141,023
141,023
Pico Rivera
0.39
64,020
64,272
64,272
Pomona
0.58
154,712
155,604
155,604
Rancho Palos Verdes
0.46
42,825
43,024
43,041
Redondo Beach
0.57
69,101
69,494
69,494
Rolling Hills
0.52
1,933
1,943
1,943
Rolling Hills Estates
0.27
8,006
8,028
8,028
Rosemead
0.44
54,987
55,231
55,231
San Dimas
0.32
34,035
34,144
34,144
San Fernando
0.53
24,404
24,533
24,533
San Gabriel
0.51
40,219
40,424
40,424
San Marino
0.34
13,520
13,566
13,566
Santa Clarita
1.72
215,890
219,611
219,611
Santa Fe Springs
3.29
17,827
18,414
18,459
Santa Monica
0.59
93,093
93,640
93,640
Sierra Madre
0.34
10,976
11,013
11,013
Signal Hill
0.42
11,624
11,673
11,673
South EI Monte
1.01
20,605
20,814
20,814
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Fiscal Year 2016-17
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January 1, 2016 and Total
Population, January
1, 2016
Total
County
Percent Change
--- Population Minus Exclusions ---
Population
City
2015-2016
1-1-15
1-1-16
1-1-2016
South Gate
1.43
98,176
99,578
99,578
South Pasadena
0.38
25,929
26,028
26,028
Temple City
0.89
36,210
36,534
36,534
Torrance
0.41
146,570
147,175
147,175
Vernon
72.13
122
210
210
Walnut
0.52
29,996
30,152
30,152
West Covina
0.74
107,081
107,873
107,873
West Hollywood
0.38
35,788
35,923
35,923
Westlake Village
0.40
8,351
8,384
8,384
Whittier
0.47
87,924
88,341
88,341
Unincorporated
0.28
1,048,161
1,051,078
1,051,989
County Total
0.85
10,145,677
10,231,861
10,241, 335
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.