RPVCCA_SR_2010_06_15_02_Annual_Appropriation_Limit_For_FY10-11CITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
DENNIS McLEAN,DIRECTOR OF FINANCE &~
INFORMATION TECHNOLOGY
JUNE 15,2010
ANNUAL APPROPRIATION LIMIT FOR FYI 0-11
CAROLYN LEHR,CITY MANAGER QSL
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION:
Adopt Resolution No.2010-establishing the City's Appropriation Limit for FY10-11.
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 FY10-11 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 FY09-10 is $21,854,570.
Based upon the proposed budget,staff has determined that $16,946,217 of projected tax
revenue is subject to the appropriation limit in FY10-11.As has historically been the case,
the City has a very large margin between the projected tax revenue and the appropriation
limit for FY1 0-11.
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RESOLUTION NO.2010-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES ESTABLISHING
THE FISCAL YEAR 201 0-2011 APPROPRIATION LIMIT
FOR THE CITY OF RANCHO PALOS VERDES
WHEREAS,the City of Rancho Palos Verdes has established its Appropriation Limit of
$21,854,570 (Twenty-One Million,Eight-Hundred and Fifty-Four Thousand,Five Hundred
and Seventy Dollars)for FY1 0-11;and
WHEREAS,by a letter,dated May 2010,the California Department of Finance has provided
the following factors relevant to the calculation of the Appropriation Limit for FY1 0-11:
California Per Capita Personal Income change:
Minus 2.54%(-Two Point Five Four Percent)
County of Los Angeles Population Adjustment:
Plus 0.83%(+Zero Point Eight Three Percent)
WHEREAS,the City Finance staff has calculated the Appropriation Limit for FY1 0-11 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 FY10-11.
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 $21,854,570
(Twenty-One Million,Eight-Hundred and Fifty-Four Thousand,Five Hundred and Seventy
Dollars)for FY09-1 O.
Section 2:The Appropriation Limit of the City of Rancho Palos Verdes in the amount of
$21,854,570 (Twenty-One Million,Eight-Hundred and Fifty-Four Thousand,Five Hundred'
and Seventy Dollars)exceeds the proceeds from taxes,calculated in the amount of
$16,946,217 (Sixteen Million,Nine-Hundred and Forty-Six Thousand,Two Hundred and
Seventeen Dollars)for FY10-11.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 15th DAY OF JUNE 2010.
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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.2010-was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on June 15,2010.
CITY CLERK
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