CC SR 20180619 F - GANN LimitRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/19/2018
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to adopt a resolution establishing the City’s
Appropriation Limit for FY18-19.
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2018-__, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES ESTABLISHING THE FISCAL YEAR
2018-2019 APPROPRIATION LIMIT FOR THE CITY OF RANCHO PALOS
VERDES.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Accounting Supervisor
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. 2018-__ (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 appropriation limit establishes a ceiling on the amount of tax revenue the City can
receive and appropriate for spending each year. The amount is adjusted each year
using inflationary and population growth statistics provided by the State Department of
Finance.
The adoption of Resolution No. 2018-__ (Attachment A) will establish the City’s FY18-
19 appropriation limit of $30,142,693. Based upon the proposed budget of $25,078,500
for proceeds from taxes, the City is in compliance with the Gann limit, falling below 83%
of the appropriation limit (Attachment B).
1
RESOLUTION NO. 2018-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ESTABLISHING THE FISCAL
YEAR 20 18-2019 APPROPRIATION LIMIT FOR THE CITY
OF RANCHO PALOS VERDES
WHEREAS, the City of Rancho Palos Verdes has established its Appropriation
Limit of $30,142,693 (Thirty Million, One Hundred Forty-Two Thousand and Six Hundred
Ninety-Three Dollars) for FY18-19; and,
WHEREAS, by a letter, dated May 2018, the California Department of Finance has
provided the following factors relevant to the calculation of the Appropriation Limit for
FY18-19:
California Per Capita Personal Income change:
3.67% (Three Point Sixty-Seven Percent)
County of Los Angeles Population Adjustment:
0.51% (Zero Point Fifty-One Percent)
WHEREAS, the City Finance Staff has calculated the Appropriation Limit for FY18-
19 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 FY18-
19.
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
$30,142,693 (Thirty Million, One Hundred Forty-Two Thousand and Six Hundred Ninety-
Three Dollars) for FY18-19.
Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the
amount of $30,142,693 (Thirty Million, One Hundred Forty-Two Thousand and Six
Hundred Ninety-Three Dollars) exceeds the proceeds from taxes, calculated in the
amount of $25,078,500 (Twenty-Five Million, Seventy-Eight Thousand and Five Hundred
Dollars) for FY18-19. 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
APPROVED AND ADOPTED THE 19TH DAY OF JUNE 2018.
___________________________
MAYOR
ATTEST:
______________________________
CITY CLERK
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, EMILY COLBORN, City Clerk of The City of Rancho Palos Verdes, hereby certify that
the above Resolution No. 2018-__ was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on June 19, 2018.
__________________________
__ 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
Proposed Budget
Proceeds of Taxes
% of Budget
to Limit
2018-19 18-xx 3.67 0.51 1.04199 $30,142,693 $25,078,500 83%
2017-18 17-xx 3.69 0.57 1.04281 $28,928,085 $24,109,140 83%
2016-17 16-25 5.37 0.85 1.06266 $27,740,504 $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%
B-1
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2018-2019
NON
PROCEEDS PROCEEDS
GENERAL FUND OF TAXES OF TAXES TOTAL
TAXES
Golf Tax 386,300 386,300
Property Tax 8,060,800 8,060,800
Property Tax In-Lieu of Sales Tax 0 0
Property Tax In-Lieu of VLF Revenues 4,862,800 4,862,800
Property Tax Redev Tax Trust 35,100 35,100
Property transfer Tax 480,300 480,300
Franchise Tax 2,024,900 2,024,900
Sales and Use Tax - PW (PSAF)81,300 81,300
Sales and Use Tax 2,480,000 2,480,000
Utility Users Tax 1,921,600 1,921,600
Transient Occupancy Tax 210,100 210,100
Transient Occupancy Tax - Terranea 5,613,000 5,613,000
Business license Tax 904,100 904,100
TOTAL TAXES 24,954,100 2,106,200 27,060,300
LICENSES AND PERMITS
Planning permits 415,000 415,000
Bldg and safety permits & geology fees 1,682,500 1,682,500
Right of way & parking permits 102,800 102,800
Film permits 50,000 50,000
Massage permits 0 0
Animal control fees 40,000 40,000
TOTAL LICENSES AND PERMITS 0 2,290,300 2,290,300
FINES AND FORFEITURES
Tow fees 0 0
False alarm fines 1,000 1,000
Misc court fines 88,000 88,000
TOTAL FINES AND FORFEITURES 0 89,000 89,000
RENTS
Rent- Citywide 182,900 182,900
Rent- Cityhall 0 0
Facility rentals - All Rec & Park 247,000 247,000
TOTAL RENTS 0 429,900 429,900
INTEREST
Interest earnings 124,400 31,100 155,500
TOTAL INTEREST 124,400 31,100 155,500
CHARGES FOR SERVICES
Engineering fees 0 0
Sale of Signs/Services 700 700
Recreation fees 244,000 244,000
TOTAL CHARGES FOR SERVICES 0 244,700 244,700
REVENUES FROM OTHER AGENCIES
Motor vehicle license fees 0 0
Grant income 0 0
TOTAL REVENUES FROM OTHER AGENCIES 0 0 0
OTHER REVENUES
Special Fund Admin 89,700 89,700
CASP Fees 500 500
Successory Agency Admin 0 0
RDA Loan Repayment 215,900 215,900
B-2
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2018-2019
NON
PROCEEDS PROCEEDS
Donations 19,000 19,000
PVIC Gift Shop 120,000 120,000
Miscellaneous Revenues 208,300 208,300
TOTAL REVENUES FROM OTHER AGENCIES 0 653,400 653,400
Inter-Fund Transfers
Transfers in Public Safety 130,000 130,000
Transfers in Building Replacement 0 0
Transfers in Waste Reduction 0 0
Transfers in Measure A Maintenance 90,000 90,000
TOTAL INTER-FUND TRANSFERS 0 220,000 220,000
TOTAL GENERAL FUND 25,078,500 6,064,600 31,143,100
81%19%100%
NON
PROCEEDS PROCEEDS
ALL FUNDS OF TAXES OF TAXES TOTAL
GENERAL FUND 25,078,500 6,064,600 31,143,100
Gas Tax 1,798,600 1,798,600
1972 ACT 300 300
EL PRADO LIGHTING DISTRICT 2,500 2,500
1911 ACT 628,000 628,000
CDBG 139,300 139,300
WASTE REDUCTION 211,700 211,700
AIR QUALITY MANAGEMENT 50,900 50,900
PROPOSITION C 702,400 702,400
PROPOSITION A 849,400 849,400
PUBLIC SAFETY GRANTS 131,000 131,000
MEASURE R 545,400 545,400
MEASURE M 592,100 592,100
FEDERAL GRANTS 453,800 453,800
STATE GRANTS 600,000 600,000
HABITAT RESTORATION 5,000 12,400
SUBREGION 1 MAINTENANCE 8,100 8,100
MEASURE A MAINTENANCE & CAPITAL 91,100 91,100
ABALONE COVE SEWER DISTRICT 57,000 57,000
GINSBURG CULTURAL ARTS BLDG 900 900
DONOR RESTRICTED DONATIONS 17,000 17,000
QUIMBY 73,000 73,000
LOW-MOD INCOME HOUSING 44,700 44,700
AFFORDABLE HOUSING IN LIEU 6,200 6,200
ENVIRONMENTAL EXCISE TAX 116,800 116,800
BIKEWAYS 34,500 34,500
WATER QUALITY 0 0
BEAUTIFICATION FUND 5,000 5,000
CIP 5,121,200 5,121,200
EQUIPMENT REPLACEMENT FUND 327,200 327,200
TOTAL ALL FUNDS 25,078,500 18,677,700 43,763,600
PROCEEDS OF TAXES 25,078,500
GANN LIMIT 30,142,693
% OF GANN LIMIT 83%
B-3
May 2018
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of 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, 2018, in
conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit
for fiscal year 2018-19. 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 2018-19 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. California 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 section and the California Constitution can be
accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.
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. California 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, 2018.
Please Note: The 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 M. COSTA
Chief Deputy Director
Attachment
B-4
May 2018
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 2018-19 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2018-19 3.67
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2018-19
appropriation limit.
2018-19:
Per Capita Cost of Living Change = 3.67 percent
Population Change = 0.78 percent
Per Capita Cost of Living converted to a ratio: 3.67 + 100 = 1.0367
100
Population converted to a ratio: 0.78 + 100 = 1.0078
100
Calculation of factor for FY 2018-19: 1.0367 x 1.0078 = 1.0448
B-5
January 1, 2017 to January 1, 2018 and Total Population, January 1, 2018
County
City
Percent Change
2017-2018
Attachment B
1-1-17 1-1-18
--- Population Minus Exclusions ---
Total
Population
1-1-2018
Annual Percent Change in Population Minus Exclusions*
Fiscal Year 2018-19
Los Angeles
Agoura Hills 0.10 20,858 20,878 20,878
Alhambra 0.28 86,420 86,665 86,665
Arcadia 0.34 57,506 57,704 57,704
Artesia 0.07 16,695 16,706 16,792
Avalon 0.18 3,860 3,867 3,867
Azusa 0.70 49,606 49,954 49,954
Baldwin Park 0.32 76,463 76,708 76,708
Bell 0.08 36,297 36,325 36,325
Bellflower 0.28 77,466 77,682 77,682
Bell Gardens 0.19 42,971 43,051 43,051
Beverly Hills 0.18 34,443 34,504 34,504
Bradbury 0.09 1,068 1,069 1,069
Burbank 0.11 107,029 107,149 107,149
Calabasas 0.47 24,183 24,296 24,296
Carson 0.37 93,453 93,799 93,799
Cerritos 0.07 50,025 50,058 50,058
Claremont 0.42 36,293 36,446 36,446
Commerce 0.05 13,061 13,067 13,067
Compton 0.12 99,751 99,872 99,872
Covina 0.21 48,901 49,006 49,006
Cudahy 0.06 24,328 24,343 24,343
Culver City 0.03 39,847 39,860 39,860
Diamond Bar 0.38 57,245 57,460 57,460
Downey 0.42 113,670 114,146 114,146
Duarte 0.06 21,999 22,013 22,013
El Monte 0.22 116,942 117,204 117,204
El Segundo 0.04 16,777 16,784 16,784
Gardena 0.42 60,987 61,246 61,246
Glendale 1.90 201,705 205,536 205,536
Glendora 0.48 52,452 52,703 52,703
Hawaiian Gardens 0.28 14,625 14,666 14,666
Hawthorne 0.07 88,706 88,772 88,772
Hermosa Beach -0.06 19,684 19,673 19,673
Hidden Hills -0.42 1,900 1,892 1,892
Huntington Park 0.08 59,425 59,473 59,473
Industry 0.00 437 437 437
Inglewood 0.07 113,476 113,559 113,559
Irwindale 2.55 1,414 1,450 1,450
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
B-6
January 1, 2017 to January 1, 2018 and Total Population, January 1, 2018
County
City
Percent Change
2017-2018
Attachment B
1-1-17 1-1-18
--- Population Minus Exclusions ---
Total
Population
1-1-2018
Annual Percent Change in Population Minus Exclusions*
Fiscal Year 2018-19
La Canada Flintridge 0.22 20,638 20,683 20,683
La Habra Heights 0.02 5,453 5,454 5,454
Lakewood 0.07 81,126 81,179 81,179
La Mirada 0.06 49,558 49,590 49,590
Lancaster 0.22 156,594 156,931 161,485
La Puente 0.11 40,640 40,686 40,686
La Verne 0.27 33,169 33,260 33,260
Lawndale 0.08 33,580 33,607 33,607
Lomita 0.27 20,659 20,715 20,715
Long Beach 0.20 477,565 478,498 478,561
Los Angeles 0.82 4,018,531 4,051,443 4,054,400
Lynwood 0.17 71,895 72,015 72,015
Malibu 0.14 12,939 12,957 12,957
Manhattan Beach 0.08 35,961 35,991 35,991
Maywood 0.08 28,021 28,044 28,044
Monrovia 0.13 38,735 38,787 38,787
Montebello 0.29 64,142 64,327 64,327
Monterey Park 0.14 62,154 62,240 62,240
Norwalk 0.28 106,440 106,735 107,546
Palmdale 0.16 158,658 158,905 158,905
Palos Verdes Estates 0.08 13,508 13,519 13,519
Paramount 0.16 55,909 56,000 56,000
Pasadena 0.70 143,379 144,388 144,388
Pico Rivera 0.14 64,170 64,260 64,260
Pomona 0.63 154,718 155,687 155,687
Rancho Palos Verdes 0.22 42,611 42,706 42,723
Redondo Beach 0.11 68,602 68,677 68,677
Rolling Hills 0.05 1,938 1,939 1,939
Rolling Hills Estates 0.06 8,106 8,111 8,111
Rosemead 0.60 54,940 55,267 55,267
San Dimas 0.10 34,471 34,507 34,507
San Fernando 0.17 24,560 24,602 24,602
San Gabriel 0.34 40,781 40,920 40,920
San Marino 0.13 13,255 13,272 13,272
Santa Clarita 0.58 215,348 216,589 216,589
Santa Fe Springs 0.65 18,172 18,290 18,335
Santa Monica 0.12 92,305 92,416 92,416
Sierra Madre 0.12 10,973 10,986 10,986
Signal Hill 1.68 11,555 11,749 11,749
South El Monte 0.09 20,864 20,882 20,882
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
B-7
January 1, 2017 to January 1, 2018 and Total Population, January 1, 2018
County
City
Percent Change
2017-2018
Attachment B
1-1-17 1-1-18
--- Population Minus Exclusions ---
Total
Population
1-1-2018
Annual Percent Change in Population Minus Exclusions*
Fiscal Year 2018-19
South Gate 0.09 98,047 98,133 98,133
South Pasadena 0.08 26,026 26,047 26,047
Temple City 0.48 36,236 36,411 36,411
Torrance 0.06 149,157 149,245 149,245
Vernon 0.00 209 209 209
Walnut 1.01 30,151 30,457 30,457
West Covina -0.04 108,289 108,245 108,245
West Hollywood 2.53 35,818 36,723 36,723
Westlake Village 0.06 8,353 8,358 8,358
Whittier 0.29 87,117 87,369 87,369
Unincorporated 0.23 1,053,894 1,056,312 1,057,162
0.51 10,221,888 10,274,346 10,283,729County Total
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
B-8