RPVCCA_CC_SR_2015_06_16_G_Annual_Appropriation_Limit_for_FY15-16CITYOF
MEMORANDUM
LMWA�RANCHO PALOS VERDES
TO:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM:
DEBORAH CULLEN, DIRECTOR OF FINANCE
DATE:
JUNE 16, 2015
SUBJECT:
ANNUAL APPROPRIATION LIMIT FOR FYI 5-16
REVIEWED:
DOUG WILLMORE, CITY MANAGER
Staff Coordinator:
Allan Kaufman, Senior Administrative Analyst
RECOMMENDATION:
Adopt Resolution No. 2015- establishing the City's Appropriation Limit for FY15-16.
BACKGROUND:
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. The
City follows statewide guidelines in preparing the Gann appropriation limit calculation in
coordination with the adoption of the annual budget. The calculation of the appropriation limit
for FY15-16 will be reviewed by the City's independent auditors in conjunction with the
performance of the annual audit.
The appropriation limit establishes a ceiling on the amount of tax revenue the City can receive
and appropriate for spending each year. The appropriation limit is computed using a base year
amount calculated for FY79-80. The base amount is then adjusted each year using inflationary
and population growth statistics provided by the State Department of Finance. The
appropriation limit calculated for FY15-16 is $26,104,866.
Based upon the proposed budget, staff has determined that $22,430,257 of projected tax
revenue is subject to the appropriation limit in FY15-16. As has historically been the case, the
City has a very large margin between the projected tax revenue and the appropriation limit for
FY 15-16.
Attachment
RESOLUTION NO. 2015-_, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ESTABLISHING THE FISCAL YEAR 2015-2016 APPROPRIATION
LIMIT FOR THE CITY OF RANCHO PALOS VERDES (page 2)
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RESOLUTION NO. 2015-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES ESTABLISHING
THE FISCAL YEAR 2015-2016 APPROPRIATION LIMIT
FOR THE CITY OF RANCHO PALOS VERDES
WHEREAS, the City of Rancho Palos Verdes has established its Appropriation Limit of
$26,104,866 (Twenty -Six Million, One -Hundred and Four Thousand, Eight Hundred and Sixty
Six Dollars) for FY15-16; and
WHEREAS, by a letter, dated May 2015, the California Department of Finance has provided
the following factors relevant to the calculation of the Appropriation Limit for FY15-16:
California Per Capita Personal Income change:
Minus 3.82% (+ Three Point Eighty Two Percent)
County of Los Angeles Population Adjustment:
Plus 0.82% (+ Zero Point Eighty Two Percent)
WHEREAS, the City Finance staff has calculated the Appropriation Limit for FYI 5-16 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 FYI 5-16.
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 $26,104,866
(Twenty -Six Million, One -Hundred and Four Thousand, Eight Hundred and Sixty Six Dollars)
for FYI 5-16.
Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the amount of
$26,104,866 (Twenty -Six Million, One -Hundred and Four Thousand, Eight Hundred and Sixty
Six Dollars) exceeds the proceeds from taxes, calculated in the amount of $22,430,257
(Twenty Two Million, Four -Hundred and Thirty Thousand, Two Hundred and Fifty Seven
Dollars) for FY15-16. 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.
APPROVED AND ADOPTED THE 16th DAY OF JUNE 2015.
K
MAYOR
ATTEST:
CITY CLERK
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, CARLA MOREALLE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2015- was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on June 16, 2015.
CITY CLERK
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