CC SR 20190618 E - City's Appropriation Limit for FY19-20RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/18/2019
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to adopt a resolution establishing the City’s
Appropriation Limit for Fiscal Year 2019-20
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2019-__, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES ESTABLISHING THE FISCAL YEAR
2019-2020 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. 2019-__ (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 ca n
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. 2019-__ (Attachment A) will establish the City’s FY
2019-20 appropriation limit of $31,300,056. Based upon the proposed budget of
1
$25,513,980 for proceeds from taxes, the City is in compliance with the Gann limit,
falling below 82% of the appropriation limit (Attachment B).
2
RESOLUTION NO. 2019-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ESTABLISHING THE FISCAL
YEAR 2019-2020 APPROPRIATION LIMIT FOR THE CITY
OF RANCHO PALOS VERDES
WHEREAS, the City of Rancho Palos Verdes has established its Appropriation
Limit of $31,300,056 (Thirty-one Million, Three Hundred Thousand Fifty-six Dollars) for
FY 2019-20; and,
WHEREAS, by a letter, dated May 2019, the California Department of Finance has
provided the following factors relevant to the calculation of the Appropriation Limit for FY
2019-20:
California Per Capita Personal Income change:
3.85% (Three Point Eight Five Percent)
County of Los Angeles Population Adjustment:
-0.01% (Negative Zero Point Zero-One Percent)
WHEREAS, the City Finance Staff has calculated the Appropriation Limit for FY
2019-20 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 appropri ated during FY
2019-20.
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 of
$31,300,056 (Thirty-one Million, Three Hundred Thousand Fifty-six Dollars) for FY 2019-
20.
Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the
amount of $31,300,056 (Thirty-one Million, Three Hundred Thousand Fifty-six Dollars) for
FY 2019-20 exceeds the proceeds from taxes, calculated in the amo unt of $25,513,980
(Twenty-Five Million, Five Hundred Thirteen Thousand Nine Hundred Eighty Dollars) for
FY 2019-20. 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 18TH DAY OF JUNE 2019.
___________________________
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. 2019-__ was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on June 18, 2019.
__________________________
__ 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
2019-20 19-xx 3.85 -0.01 1.03840 $31,300,056 $25,513,980 82%
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%
B-1
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2019-2020
NON
PROCEEDS PROCEEDS
GENERAL FUND OF TAXES OF TAXES TOTAL
TAXES
Golf Tax 395,200 395,200
Property Tax 8,338,300 8,338,300
Property Tax In-Lieu of Sales Tax 0 0
Property Tax In-Lieu of VLF Revenues 5,106,900 5,106,900
Property Tax Redev Tax Trust 50,300 50,300
Property transfer Tax 480,000 480,000
Franchise Tax 2,044,400 2,044,400
Sales and Use Tax - PW (PSAF)80,300 80,300
Sales and Use Tax 2,448,700 2,448,700
Utility Users Tax 1,942,300 1,942,300
Transient Occupancy Tax 210,100 210,100
Transient Occupancy Tax - Terranea 5,331,200 5,331,200
Business license Tax 904,100 904,100
TOTAL TAXES 25,207,100 2,124,700 27,331,800
LICENSES AND PERMITS
Planning permits 370,000 370,000
Bldg and safety permits & geology fees 1,700,600 1,700,600
Right of way & parking permits 65,000 65,000
Film permits 2,200 2,200
Massage permits 0 0
Animal control fees 30,000 30,000
TOTAL LICENSES AND PERMITS 0 2,167,800 2,167,800
FINES AND FORFEITURES
Tow fees 8,000 8,000
False alarm fines 1,000 1,000
Misc court fines 88,000 88,000
TOTAL FINES AND FORFEITURES 0 97,000 97,000
RENTS
Rent- Citywide 182,900 182,900
Rent- Cityhall 0 0
Facility rentals - All Rec & Park 272,000 272,000
TOTAL RENTS 0 454,900 454,900
INTEREST
Interest earnings 306,880 76,720 383,600
TOTAL INTEREST 306,880 76,720 383,600
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 139,700 139,700
CASP Fees 500 500
Successory Agency Admin 0 0
RDA Loan Repayment 175,000 175,000
Donations 19,000 19,000
PVIC Gift Shop 120,000 120,000
Miscellaneous Revenues 289,400 289,400
B-2
CALCULATION OF PROCEEDS OF TAXES
PROPOSED BUDGET FY 2019-2020
NON
PROCEEDS PROCEEDS
TOTAL REVENUES FROM OTHER AGENCIES 0 743,600 743,600
Inter-Fund Transfers
Transfers in Public Safety 175,000 175,000
Transfers in Building Replacement 0 0
Transfers in Waste Reduction 0 0
Transfers in Measure A Maintenance 100,000 100,000
TOTAL INTER-FUND TRANSFERS 0 275,000 275,000
TOTAL GENERAL FUND 25,513,980 6,184,420 31,698,400
80%20%100%
NON
PROCEEDS PROCEEDS
ALL FUNDS OF TAXES OF TAXES TOTAL
GENERAL FUND 25,513,980 6,184,420 31,698,400
Gas Tax 1,827,400 1,827,400
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 12,400 12,400
SUBREGION 1 MAINTENANCE 43,100 43,100
MEASURE A MAINTENANCE & CAPITAL 91,100 91,100
ABALONE COVE SEWER DISTRICT 512,000 512,000
GINSBURG CULTURAL ARTS BLDG 900 900
DONOR RESTRICTED DONATIONS 9,500 9,500
QUIMBY 22,000 22,000
LOW-MOD INCOME HOUSING 44,700 44,700
AFFORDABLE HOUSING IN LIEU 6,200 6,200
ENVIRONMENTAL EXCISE TAX 3,800 3,800
BIKEWAYS 34,500 34,500
WATER QUALITY 0 0
BEAUTIFICATION FUND 5,000 0
CIP 4,262,400 4,262,400
EQUIPMENT REPLACEMENT FUND 111,100 111,100
TOTAL ALL FUNDS 25,513,980 18,077,320 43,586,300
PROCEEDS OF TAXES 25,513,980
GANN LIMIT 31,300,056
% OF GANN LIMIT 82%
B-3
May 2019
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, 2019, in
conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit
for fiscal year 2019-20. 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 2019-20 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, 2019.
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.
KEELY BOSLER
Director
By:
Vivek Viswanathan
Chief Deputy Director
Attachment
B-4
May 2019
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 2019-20 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2019-20 3.85
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2019-20
appropriation limit.
2019-20:
Per Capita Cost of Living Change = 3.85 percent
Population Change = 0.47 percent
Per Capita Cost of Living converted to a ratio: 3.85 + 100 = 1.0385
100
Population converted to a ratio: 0.47 + 100 = 1.0047
100
Calculation of factor for FY 2019-20: 1.0385 x 1.0047 = 1.0434
B-5
Fiscal Year 2019-20
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019
Total
County Percent Change --- Population Minus Exclusions ---
Population
City 2018-2019 1-1-18 1-1-19 1-1-2019
Los Angeles
Agoura Hills -0.15 20,874 20,842 20,842
Alhambra -0.16 87,070 86,931 86,931
Arcadia 0.64 58,516 58,891 58,891
Artesia 0.05 16,824 16,833 16,919
Avalon -0.29 3,856 3,845 3,845
Azusa 2.14 50,237 51,313 51,313
Baldwin Park 0.16 77,161 77,286 77,286
Bell 0.69 36,307 36,556 36,556
Bellflower 0.04 78,279 78,308 78,308
Bell Gardens -0.35 43,123 42,972 42,972
Beverly Hills -0.20 34,697 34,627 34,627
Bradbury -0.65 1,084 1,077 1,077
Burbank -0.21 106,175 105,952 105,952
Calabasas -0.19 24,284 24,239 24,239
Carson -0.01 93,609 93,604 93,604
Cerritos 0.86 50,280 50,711 50,711
Claremont 0.09 36,479 36,511 36,511
Commerce -0.25 13,054 13,021 13,021
Compton -0.28 98,985 98,711 98,711
Covina -0.08 48,914 48,876 48,876
Cudahy -0.28 24,333 24,264 24,264
Culver City 0.96 39,790 40,173 40,173
Diamond Bar -0.13 57,572 57,495 57,495
Downey -0.18 114,413 114,212 114,212
Duarte -0.25 22,007 21,952 21,952
El Monte 0.76 116,315 117,204 117,204
El Segundo -0.01 17,067 17,066 17,066
Gardena -0.19 61,158 61,042 61,042
Glendale 0.73 204,782 206,283 206,283
Glendora 0.07 52,086 52,122 52,122
Hawaiian Gardens -0.22 14,723 14,690 14,690
Hawthorne -0.16 87,996 87,854 87,854
Hermosa Beach 0.17 19,814 19,847 19,847
Hidden Hills -0.79 1,900 1,885 1,885
Huntington Park -0.06 59,386 59,350 59,350
Industry 0.00 432 432 432
Inglewood -0.19 112,759 112,549 112,549
Irwindale 4.08 1,447 1,506 1,506
*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
Fiscal Year 2019-20
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019
Total
County Percent Change --- Population Minus Exclusions ---
Population
City 2018-2019 1-1-18 1-1-19 1-1-2019
La Canada Flintridge -0.10 20,623 20,602 20,602
La Habra Heights -0.07 5,489 5,485 5,485
Lakewood -0.13 81,459 81,352 81,352
La Mirada -0.05 49,585 49,558 49,558
Lancaster 0.28 156,841 157,273 161,604
La Puente 0.19 40,719 40,795 40,795
La Verne -0.11 33,239 33,201 33,201
Lawndale -0.27 33,527 33,436 33,436
Lomita -0.06 20,776 20,763 20,763
Long Beach -0.21 475,921 474,941 475,013
Los Angeles 0.05 4,035,356 4,037,190 4,040,079
Lynwood -0.22 71,497 71,343 71,343
Malibu -7.42 13,011 12,046 12,046
Manhattan Beach -0.24 36,010 35,922 35,922
Maywood -0.21 28,029 27,971 27,971
Monrovia -0.14 38,582 38,529 38,529
Montebello -0.11 64,316 64,247 64,247
Monterey Park -0.38 62,061 61,828 61,828
Norwalk -0.12 106,077 105,950 106,744
Palmdale 0.05 157,782 157,854 157,854
Palos Verdes Estates -0.26 13,579 13,544 13,544
Paramount -0.01 55,503 55,497 55,497
Pasadena 0.90 145,003 146,312 146,312
Pico Rivera -0.42 64,306 64,033 64,033
Pomona 0.08 154,189 154,310 154,310
Rancho Palos Verdes -0.24 42,647 42,543 42,560
Redondo Beach 0.16 68,361 68,473 68,473
Rolling Hills -0.32 1,898 1,892 1,892
Rolling Hills Estates -0.08 8,254 8,247 8,247
Rosemead -0.25 55,237 55,097 55,097
San Dimas -0.25 34,669 34,584 34,584
San Fernando 1.32 24,593 24,918 24,918
San Gabriel -0.22 41,270 41,178 41,178
San Marino -0.06 13,360 13,352 13,352
Santa Clarita 2.70 212,378 218,103 218,103
Santa Fe Springs 0.04 18,208 18,216 18,261
Santa Monica -0.11 93,698 93,593 93,593
Sierra Madre -0.27 11,165 11,135 11,135
Signal Hill 0.31 11,758 11,795 11,795
South El Monte 0.95 21,092 21,293 21,293
*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
Fiscal Year 2019-20
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019
Total
County Percent Change --- Population Minus Exclusions ---
Population
City 2018-2019 1-1-18 1-1-19 1-1-2019
South Gate -0.25 97,019 96,777 96,777
South Pasadena -0.12 26,276 26,245 26,245
Temple City 0.37 36,447 36,583 36,583
Torrance -0.24 148,408 148,054 148,054
Vernon -0.33 302 301 301
Walnut -0.02 30,557 30,551 30,551
West Covina -0.25 108,388 108,116 108,116
West Hollywood -0.17 36,723 36,660 36,660
Westlake Village -0.86 8,451 8,378 8,378
Whittier -0.26 87,756 87,526 87,526
Unincorporated -0.87 1,055,092 1,045,918 1,046,858
County Total -0.01 10,245,275 10,244,542 10,253,716
*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