HomeMy WebLinkAboutItem 1j: Resolution 6701 Amending Appropriation Limit for Fiscal Year 2009-2010DATE: November 3, 2009
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Prepared by: Shannon Huang, Financial Services nager/Treasurer
SUBJECT: Resolution No. 6701 Amending the Appropriation Limit for fiscal year
2009 -2010
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. Council adopted resolution 6683
and established FY2009 -10 appropriation limit on June 16, 2009. The appropriation
limit was mis- calculated due to an incorrect population factor used, therefore, a revision
to the appropriation limit is required. The City's current year appropriation will still be
more than $32 million under the appropriation limit after the revision. It is recommended
that the City Council approve a resolution establishing the revised annual adjustment
factors and the resultant Limit for fiscal year 2009 -2010.
BACKGROUND
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, which can be spent by City
Government. Proposition 4 became effective for the 1980 -81 fiscal year, but the
formula for calculating the Limit was based on the 1978 -79 "base year" revenues.
In June 1990, the voters of California approved Proposition 111, which, among other
things, provides new adjustment formulas that make the Appropriation Limit more
responsive to local growth issues. Proposition 111 also implemented a requirement for
an annual review of the Limit calculation.
1
STAFF REPORT
Administrative Services Department
DISCUSSION
The Appropriation Limitation imposed by Propositions 4 and 111 creates a restriction on
the amount of revenue, which can be appropriated in any fiscal year. The Limit is based
on actual City appropriations during the 1978 -79 fiscal year, and is increased each year
using the growth of population and inflation.
Beginning with the 1990 -91 Fiscal Year, and as a result of the passage of Proposition
111, the annual adjustment factor in computing the limit has changed. Instead of using
the change in the California Per Capita Income or U.S. Consumer Price Index to
measure inflation, each City may now 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.
The second factor and an important change authorized by the passage of Proposition
111 is, instead of using only the population growth of the City, the City may choose to
use the population within the County of Los Angeles.
Factors used for the 2009 -2010 fiscal year GANN Limit are the population growth of the
City of Arcadia at 1.0067 and the California per capita personal income factor of 1.0062.
The population growth factor used previously for the GANN calculation was 1.0111.
The rate was neither the County's nor the City's population growth rate. Therefore, a
recalculation to the GANN limit is necessary by using the City's population growth factor
of 1.0067.
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, 2010. As calculated, the
City's Proceeds of Taxes net of exclusions is established at $33,241,136 (Exhibit C).
The 2009 -2010 Appropriation Limit is $65,429,264 (Exhibit A). Exhibit B shows that the
City of Arcadia is under the appropriation limit by 32,188,128.
RECOMMENDATION
Adopt Resolution No. 6701, a Resolution of the City Council of the City of
Arcadia, California, amending the appropriations limit for the fiscal year 2009-
2010 pursuant to Article III -B of the California Constitution.
Approved: ci
Donald Penman, City Manager
CITY OF ARCADIA
APPROPRIATIONS LIMIT
FISCAL YEAR 2009 -2010
A. Last Year's Limit (2008 -2009) $64,595,976
B. Adjustment Factors
1. Population 1.0067
2. Per Capita 1.0062
Total Adjustment (1.0062 x 1.0067) 1.0129
C. Annual Adjustment (64,595,976 x 1.0129 64,595,976) 833,288
D. 2009 -2010 Limit $65,429,264
3
EXHIBIT "A"
AMOUNT
CITY OF ARCADIA
POPULATION /INFLATIONARY ADJUSTMENT
FISCAL YEAR 2009 -2010
PER CAPITA INFLATIONARY ADJUSTMENT
POPULATION GROWTH CITY OF ARCADIA
SOURCE: DEPARTMENT OF FINANCE, STATE OF CALIFORNIA
4
EXHIBIT "A -1"
0.62%
1.0067
CITY OF ARCADIA
APPROPRIATIONS SUBJECT TO LIMITATION
FISCAL YEAR 2009 -2010
A. Proceeds of Taxes 33,570,276
B. Exclusions 329,140)
C. Appropriations Subject to Limitation 33,241,136
D. 2009 -2010 Year Limit 65,429,264
E. Over (Under) Limit 32,188,128)
5
AMOUNT SOURCE
Exhibit "C"
Exhibit "D"
Exhibit "A"
EXHIBIT "B"
REVENUE
Property Tax
Sales Use Tax
Transient Occupancy Tax
Property Transfer Tax
Utility Users Tax
Business License Tax
TOTAL TAXES
FROM STATE
Motor Vehicle In Lieu
Gasoline Tax
Homeowner's Exemption
POST
SB 90 Reimbursements
STC Program
TOTAL FROM STATE
OTHER GOVERNMENTS
Charges to ARA
Community Development
(CDBG)
Other (PROP A &C) Taxes
PROP A Park Maint. Services
AQMD (AB2766)
TOTAL OTHER GOVERNMENTS
LOCALLY RAISED
LICENSES AND PERMITS
Franchise Fee
Parking Permits
Plan Check Fees
Building Permits
Mechanical, Electrial Plumbing
Permits
CITY OF ARCADIA
CALCULATION OF PROCEEDS
FISCAL YEAR 2009 -2010
PROCEEDS
OF TAXES
4,526,000
6
50,000
NON
PROCEEDS
OF TAXES
9,492,000
9,189,000
2,495,000
216,000
5,300,000
896,580 50,000
27,588,580 50,000 27,638,580
1,448,000
20,000
1,100,000
275,000
535,000
680,000
163,000
EXHIBIT "C"
TOTAL
9,492,000
9,189, 000
2,495,000
216,000
5,300,000
946,580
4,526,000
1,448,000
50,000
20,000
4,576,000 1,468,000 6,044,000
239,060 239,060
481,620 481,620
1,461,000 1,461,000
20,000 20,000
65,000 65,000
2,266,680 2,266,680
1,100, 000
275,000
535,000
680,000
163,000
REVENUE
Home Occupantion Permits
Miscellaneous Permits
Planning Applications
Fire Plan Check
Engineering Permit Fees
Fire Code Permits
Fire Permit Inspections
Storm Water Plan Check Fees
Transpaction Impact fees
Solid Waste Assessments
Charges for Current Service
Recreation Activities
Library Charges
Rent Royalty
Park/Dwelling Unit Fees
TOTAL LICENSES PERMITS
FINES PENALTIES
Miscellaneous Fines
Parking Citations
Code Enforcement
Fire Citations
TOTAL FINES PENALTIES
OTHER REVENUE
Total Estimated Revenues
Before Revenue from Use of Money
PROCEEDS
OF TAXES
7
Parimutual Receipts 1,100,000
Admin. O/H Transit
Admin. O/H Water
Admin. O/H Solid Waste
Admin. O/H Sewer
Admin. O/H Prop A
Admin. O/H Prop C
Admin. Parking District
Miscellaneous Receipts
Court Appearances
Sale of Property
Waste Management Administration
TOTAL OTHER REVENUE 1,100,000
NON
PROCEEDS
OF TAXES
13,000
7,000
170,000
135,000
20,000
95,000
43,000
5,000
166,000
345,000
2,288,100
824,480
91,820
1,152,000
280,000
8,388,400
50,000
430,000
5,000
10,000
495,000
TOTAL
13,000
7,000
170,000
135,000
20,000
95,000
43,000
5,000
166,000
345,000
2,288,100
824,480
91,820
1,152, 000.
280,000
8,388,400
50,000
430,000
5,000
10,000
495,000
1,100,000
157,960 157,960
1,124, 960 1,124, 960
157,960 157,960
80,880 80,880
19,440 19,440
18,050 18,050
3,290 3,290
46,860 46,860
3,000 3,000
20,000 20,000
100,000 100,000
1,732,400 2,832,400
33,264,580 14,400,480 47,665,060
REVENUE
PROCEEDS
OF TAXES
NON
PROCEEDS TOTAL
OF TAXES
Revenue Earned from Use of Money
Earned on Non Proceeds 286,000 286,000
of Taxes: Funds 107, 118
142, 151, 155, 157 521,153
Proceeds of Taxes: Fund 302 60;000 60,000
General Fund 245,696 106,304 352,000
TOTAL REVENUE EARNED
FROM USE
305,696 392,304 698,000
GRAND TOTAL 33,570,276 14,792,784 48,363,060
8
CITY OF ARCADIA
INTEREST EARNINGS PRODUCED BY TAXES
FISCAL YEAR 2009 -2010
PROCEEDS OF TAXES (EXCLUDING INTEREST) $33,264,580
TOTAL REVENUE (EXCLUDING INTEREST) $47,665,060
PERCENT APPLICABLE TO PROCEEDS OF TAXES (69.8
TOTAL INTEREST GENERAL FUND 352,000
INTEREST APPLICABLE TO PROCEEDS OF TAXES (69.8 245,696
INTEREST APPLICABLE TO NON PROCEEDS OF TAXES (30.2 106,304
INTEREST DIRECTLY IDENTIFIED TO FUNDS WHICH REVENUES
ARE IDENTIFIED AS NON PROCEEDS OF TAXES FUNDS 107,
118,142, 151, 155, 157, 521,153,
286,000
9
Exhibit "C -1"
INTEREST DIRECTLY IDENTIFIED TO FUNDS WHICH REVENUES
IDENTIFIED AS PROCEEDS OF TAXES FUND 302 60,000
FEDERAL MANDATED COSTS:
CITY OF ARCADIA
EXCLUSIONS
FISCAL YEAR 2009 -2010
MEDICARE $329,140
10
EXHIBIT "D"
RESOLUTION NO. 6701
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, ESTABLISHING A REVISED APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2009 -2010 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 City of Arcadia in lieu of the growth in the
population of the County of Los Angeles; 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 2009 -2010 for the City of
Arcadia shall be and is hereby set in the amount of $65,429,264.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
ATTEST:
City Clerk
Passed, approved and adopted this
APPROVED AS TO FORM:
0
Stephen P. Deitsch
City Attorney
2
day of 2009.
Mayor of the City of Arcadia