HomeMy WebLinkAboutItem 2d - Adopt Resolution No. 6971 - Appropriation Limit for Fiscal Year 2013-14I 7611 AJ
DATE: June 4, 2013
TO: Mayor and City Council
STAFF REPORT
Administrative Services Department
FROM: Hue C. Quach, Administrative Services Director
Shannon Huang, Financial Services Manager /Treasurer
SUBJECT: ADOPT RESOLUTION NO. 6971 ESTABLISHING AN APPROPRIATION
LIMIT FOR FISCAL YEAR 2013 -14 PURSUANT TO ARTICLE XIII -B OF
THE CALIFORNIA CONSTITUTION
Recommendation: Adopt
SUMMARY
Article XIII -B of the State Constitution imposes a limit ( "the Gann Limit ") on tax proceeds
that can be appropriated for expenditures in any given fiscal year. Section 7910
requires the City to establish the limit by resolution. It is recommended that the City
Council adopt Resolution No. 6971 (Exhibit E) establishing the annual adjustment
factors and the resultant Limit for Fiscal Year 2013 -14.
DISCUSSION
In November 1979, the voters of the State of California approved Proposition 4,
commonly known as the Gann initiative. This proposition created Article XIII -B of the
State Constitution placing limits on the amount of revenue that can be spent by any city
government. Each government was allocated a base year Limit, which is adjusted
annually for inflation and population growth. The law also requires an annual review of
the Limit calculation.
Certain revenues do not count toward the annual Gann Limit. For instance, the
expenditure of tax proceeds on voter- approved debt and the costs of complying with
Court orders and Federal mandates, do not count, with certain restrictions. Similarly, if
the State specifies that funds transmitted to cities are restricted in their use (e.g., State
Gas Tax), then they are not counted in the City's Gann Limit.
To measure inflation, each City may choose the greater of the growth in the California
Per Capita Income or the growth in the non - residential assessed valuation due to new
construction within the City. At the present time, the data necessary to calculate the
increase in the non - residential assessed valuation is not available from the Los Angeles
County Assessor. Thus, the change of California Per Capita Income at 5.12% has been
used as the inflationary adjustment factor in the calculation of the City's Fiscal Year
2013 -14 Appropriation Limit.
The second factor for calculating the Limit is the change in population. Cities may
choose the greater of the population growth within the county or the City. In the County
of Los Angeles, population growth was 0.69 %; the City's population growth was 0.52%
in 2012. As a result, the City has chosen to use the County growth factor for FY13 -14's
GANN Limit calculation.
The attached exhibits A, B, C, and D, demonstrate the City's compliance with Article
XIII -B of the State Constitution for the Fiscal Year ending June 30, 2014. As calculated,
the City's Proceeds of Taxes Before Exclusions is established at $37,519,188
(Exhibit C), and the FY2013 -14 Appropriation Limit is $72,546,879 (Exhibit A). Exhibit B
shows that the City of Arcadia is under the Appropriation Limit by $35,446,991.
FISCAL IMPACT
The Gann Limit for the City of Arcadia in FY 2103 -14 is established at $72,546,879.
The appropriations subjected to the limit in the annual Budget are $37,519,188, which
are well within the Limit. Therefore, the City may fully expend all funds appropriated in
the FY 2013 -14 Budget and has room for additional appropriations during the year as
necessary.
RECOMMENDATION
It is recommended the City Council adopt Resolution No. 6971 establishing an
Appropriation Limit for Fiscal Year 2013 -14 pursuant to Article III -B of the California
Constitution.
Approved
Dominic Lazzare
City Manager
Attachments- Exhibit A
Exhibit A -1
Exhibit B
Exhibit C
Exhibit C -1
Exhibit D
Exhibit E
- Appropriation Limit for Fiscal Year 2013 -14
- Population /Inflationary Adjustment
- Appropriations Subject to Limitation
- Calculation of Proceeds
- Interest Earnings produced by Taxes
- Exclusions
- Resolution No. 6971
I
C
CITY OF ARCADIA
APPROPRIATIONS LIMIT
FISCAL YEAR 2013 -14
EXHIBIT "A"
AMOUNT
Last Year's Limit (2012 -13) $68,537,439
Adjustment Factors
1. Los Angeles County Population 1.0069
2. Per Capita 1.0512
Total Adjustment (1.0512 *1.0069) 1.0585
Annual Adjustment (68,537,439 x 1.0585 — 68,537,439) 4,009,440
FY2013 -14 Limit $72,546,879
EXHIBIT "A -1"
CITY OF ARCADIA
POPULATION /INFLATIONARY ADJUSTMENT
FISCAL YEAR 2013 -14
Per Capita Inflationary Adjustment 5.12%
Population Growth — County of Los Angeles 1.0069
Source: Department of Finance, State of California
CITY OF ARCADIA
APPROPRIATIONS SUBJECT TO LIMITATION
FISCAL YEAR 2013 -14
A. Proceeds of Taxes
B. Exclusions
C. Appropriations Subject to Limitation
D. 2013 -14 Year Limit
E. Over (Under) Limit
EXHIBIT "B"
AMOUNT SOURCE
$ 37,519,188 Exhibit "C"
( 419,300) Exhibit "D"
37,099,888
72,546,879 Exhibit "A"
($ 35,446,991)
REVENUE
Property Tax
Public Safety Augmentation
Sales & Use Tax
Transient Occupancy Tax
Property Transfer Tax
Utility Users Tax
Business License Tax
TOTALTAXES
FROM STATE
EXHIBIT "C"
CITY OF ARCADIA
CALCULATION OF PROCEEDS
FISCAL YEAR 2013 -14
PROCEEDS NON
OF TAXES PROCEEDS TOTAL
OF TAXES
$ 10,085,400
- $ 10,085,400
442,000
- 442,000
9,762,800
- 9,762,800
2,859,700
- 2,859,700
522,900
- 522,900
6,722,200
- 6,722,200
1,150,000
50,000 1,200,000
$ 31,545,000 $
50,000 $ 31,595,000
Motor Vehicle In Lieu $ 5,072,500 - $ 5,072,500
Gasoline Tax - $ 1,651,250 1,651,250
Homeowner's Exemption 82,800 - 82,800
POST - 20,000 20,000
SB 90 Reimbursements - 30,000 30,000
TOTAL FROM STATE $ 5,155,300 $ 1,701,250 $ 6,856,550
OTHER GOVERNMENTS
Community Development (CDBG)
Other (PROP A &C) Taxes
Prop A Park Maint. & Services
Measure R
AQMD (AB2766)
TOTAL OTHER GOVERNMENTS
LOCALLY RAISED
LICENSES AND PERMITS
272,200
272,200
1,760,840
1,760,840
40,000
40,000
598,700
598,700
67,800
67,800
$ 2,739,540 $ 2,739,540
Franchise Fee - $ 1,066,100 $ 1,066,100
Parking Permits - 290,000 290,000
Plan Check Fees - 867,500 867,500
FINES & PENALTIES
Miscellaneous Fines
PROCEEDS NON
56,000
REVENUE
OF TAXES PROCEEDS
TOTAL
-
OF TAXES
Building Permits
- 1,000,000
1,000,000
Mechanical, Electrial & Plumbing
- 250,000
250,000
Permits
-
1,500
Home Occupantion Permits
- 20,000
20,000
Miscellaneous Permits
- 15,000
15,000
Planning Applications
- 250,000
250,000
Fire Plan Check
- 170,000
170,000
Engineering Permit Fees
- 70,000
70,000
Fire Code Permits
- 110,000
110,000
Fire Permit Inspections
- 50,000
50,000
Off -site Improvement
- 18,000
18,000
Water Efficient Landscape
100,000
100,000
Storm Water Plan Check Fees
- 6,600
6,600
SB1473 building Permit
- 300
300
Transpaction Impact fees
- 500,000
500,000
Solid Waste Assessments
342,000
342,000
Charges for Current Service
- 2,626,500
2,626,500
Recreation Activities
- 1,066,400
1,066,400
Library Charges
- 73,500
73,500
Rent & Royalty
- 1,282,400
1,282,400
Park /Dwelling Unit Fees
- 1,200,000
1,200,000
TOTAL LICENSES & PERMITS
- $ 11,374,300 $
11,374,300
FINES & PENALTIES
Miscellaneous Fines
- $
56,000
$
56,000
Parking Citations
-
550,000
550,000
Code Enforcement
-
17,000
17,000
Fire Citations
-
1,500
1,500
TOTAL FINES & PENALTIES
- $
624,500
$
624,500
OTHER REVENUE
Parimutual Receipts $
750,000
-
$
750,000
Admin. O/H Transit
- $
94,100
94,100
Admin. O/H Water
-
1,070,700
1,070,700
Admin. O/H Sewer
-
199,100
199,100
Admin. O/H Parking District
-
1,800
1,800
Admin. O/H Redevelopment
41,000
41,000
Miscellaneous Receipts
-
20,000
20,000
Court Appearances
-
2,500
2,500
Waste Management Admin. Fees
-
104,600
104,600
TOTAL OTHER REVENUE $
750,000 $
1,533,800
$
2,283,800
REVENUE
Total Estimated Revenues
PROCEEDS
OF TAXES
NON
PROCEEDS
OF TAXES
Before Revenue from Use of Money $
37,450,300
$ 18,023,390 $
Revenue Earned from Use of Money
Earned on Non - Proceeds
-
69,470
of Taxes: Funds 107, 118
142, 151, 155, 157 & 521,153,161
Proceeds of Taxes: Fund 302
13,200
-
General Fund
55,688
26,812
TOTAL REVENUE EARNED
FROM USE OF MONEY $
68,888
$ 96,282 $
GRAND TOTAL $
37,519,188
$ 18,119,672 $
TOTAL
55,473,690
69,470
13,200
82,499
165,169
55,638,859
Exhibit "C -1"
CITY OF ARCADIA
INTEREST EARNINGS PRODUCED BY TAXES
FISCAL YEAR 2013 -14
Proceeds of Taxes (Excluding Interest) $37,450,300
Total Revenue (Excluding Interest) $55,473,690
Percent applicable to Proceeds of Taxes (67.5 %)
Total interests budgeted for General Fund $ 82,500
Interest applicable to Proceeds of Taxes (67.5 %) $ 55,688
Interest applicable to Non - Proceeds of Taxes (32.5 %) $ 26,812
Interest directly identified to Funds which revenues are identified
as Non Proceeds of Taxes — Funds 107,118, 142, 151, 155, 157,
521,153, 161 $ 69,470
Interest directly identified to Funds which revenues are identified as
Proceeds of Taxes — Fund 302 $ 13,200
EXHIBIT "D"
CITY OF ARCADIA
EXCLUSIONS
FISCAL YEAR 2013 -14
FEDERAL MANDATED COSTS:
Medicare $419,300
EXHIBIT "E"
RESOLUTION NO. 6971
[Attached behind this page]
RESOLUTION NO. 6971
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA, CALIFORNIA, ESTABLISHING
AN APPROPRIATIONS LIMIT FOR FISCAL YEAR
2013 -2014 PURSUANT TO ARTICLE XIII -B OF THE
CALIFORNIA CONSTITUTION
WHEREAS, Article XIII -B of the Constitution of the State of California
imposes upon the City of Arcadia, as well as all cities, the obligation to limit each
fiscal year's appropriations in fiscal year 1978 -79 as adjusted for subsequent
inflation and population changes; and
WHEREAS, the City of Arcadia has opted to use, as the inflation adjustment
factor, the percentage change in California per capita personal income in lieu of the
growth in the non - residential assessed valuation; and
WHEREAS, at the time the appropriations limit calculations were prepared,
the date necessary to calculate the increase in the non - residential assessed
valuation was generally not available from the County Assessor; and
WHEREAS, there exists a possible need to adjust the appropriations limit
once the assessment date is available, and consequently this Resolution is being
adopted on a provisional basis; and
WHEREAS, the City of Arcadia has opted to use, as the population
adjustment factor, the growth in the population of the County of Los Angeles in
lieu of the growth in the population of the City of Arcadia, and
WHEREAS, pursuant to Article XIII -B of the California Constitution, the
City is required to set its appropriation limit for each fiscal year, and has made
available to the public the documentation used in the determination of said
appropriation limit.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND
RESOLVE AS FOLLOWS:
SECTION 1. The appropriation limit for Fiscal Year 2013 -14 for the
City of Arcadia shall be and is hereby set in the amount of $72,546,879.
SECTION 2. The City Clerk shall certify to the adoption of this
Resolution.
Passed, approved and adopted this 4th day of June, 2013.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney