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HomeMy Public PortalAbout17) 8B Annual Appropriations Limit for FY 2019-20,----------------~~ AGENDA ITEM 8.8. ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: June 18, 2019 TO: The Honorable City Council FROM: Bryan Cook , City Manager By: Susan Paragas , Administrative Services Director SUBJECT: PUBLIC HEARING -ADOPTION OF RESOLUTION NO. 19-5401 ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR (FY) 2019-20 RECOMMENDATION: The City Council is requested to: 1 . Receive presentation from staff; 2 . Open the public hearing ; 3. Receive public input ; 4. Close the public hearing ; and 5. Adopt Resolution No. 19-5401 adopting the annual Appropriations Lim it (Limit) for FY 20 19-20 . BACKGROUND: 1. In November 1979, Propos ition 4 was approved by the voters adding Article XIIIB , also known as the Gann Limitation , to the State Constitution to insure that limits were placed on all state and local government appropriations . These appropriations calcu lations must be approved by the Ci ty Council on an annual basis . 2. In 1980 , the State Legislature added Section 9710 of the Government Code stating that the governing body of each City must establish , by resolution , an appropriations limit for the following year . 3 . In June 1990 , the voters of Ca lifornia approved Proposition 111 which rev ised the annual adjustment factors applied to the 1986-87 Limit and each year thereafter. City Council June 18, 2019 Page 2 of 2 4. On June 6 , 2019, Notice of the Public Hearing to establish the Limit subject to the California Constitution was published in the Temple City Tribune . ANALYSIS: Article XIII -B provides limits to the amount of tax proceeds state and local governments can spend each year . The limit for any fiscal year is equal to the previous year's limit , adjusted for population changes and the change in the U.S . Consumer Price Index or California per capital personal income, whichever is less . Staff has comp li ed with all the provisions of Article XI liB in determining the Lim it for FY 2019-20 , and the C ity Council is required to confirm all factors used for calculating the Limit by adoption of a resolut ion . For FY 2019-20 , the California Per Capita Income and the population growth of the County were applied to the FY 2018-19 Limit. The City of Temple City 's Lim it for FY 2019-20 is $21 ,917,485 , with appropriations subject to the Limit of $10 ,864 ,930 , or $11 ,052 ,555 below the Limit. CITY STRATEGIC GOALS: In order to be in compliance w ith California State law, adoption of Resolution No . 19-5401 by the City Council will promote or further the C ity's Strategic Goal of Good Governance . FISCAL IMPACT: Adopt ion of this Resolution does not have an impact on the FY 2019-20 City Budget. ATTACHMENT: A Resolution 19-5401 L __ _ ATTACHMENT A RESOLUTION NO. 19-5401 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA ADOPTING THE ANNUAL APPROPRIATIONS LIM IT FOR THE FISCAL YEAR (FY) 2019- 2020 WHEREAS , the voters of California in November, 1979 added Article XIIIB (Proposition 4 ) to the State Constitution placing various limitations on the app ropriations of the State and local governments; and WHEREAS , the voters of California in June , 1990 mod ified Article XIIIB by approving Proposition 11 1 and SB 88 (Chapter 60/90) which revised the annual adjustment fact ors to be app lied to the 1986-87 Limit and each year thereafter; and WHEREAS , the City of Temple City has calculated the Appropriations Limit by adjusting the 1986-87 Limit for annual changes in the cost of living and population growth ; and WHEREAS , th e City of Temp le City has compli ed with all the provisions of Article X I liB in determining the Appropriations Lim it for FY 2019-20 as provided in the worksheets attached hereto as Exhibit 1. NOW, THEREFORE , the City Council of the City of Temple City does res olve, determ ine and order as follows : SECTION 1. That the Appropriations Lim it for FY 2019-20 shall be $21 ,917,485 , with appropriations subject to the limit of $10,864,930 , or $1 1,052 ,555 les s than the limit. SECTION 2. The City C lerk shall cert ify to the adoption of this resolution . APPROVED AND ADOPTED this 18th day of June , 2019 . Nanette Fish , Mayor ATTEST: APPROVED AS TO FORM : Peggy Kuo , City Clerk Greg Murphy, City Attorney EXHIBIT 1, Page 1 ART ICLE XIII-B OF THE CALIFORNIA CONSTITUTION (GANN IN ITIATIVE ) Effective July 1, 1980, Proposition 4 (Gann) established a limit on t he City's expenditures from tax reven ues based on 1978-79 appropriations . This lim it is adjusted annually by the Consumer Price In dex and population changes. Non-Proceeds of Taxes (Fines and Forfeitures and User Fees ) were not subj ect to this limit. In 1989-90 Proposition 11 1 was passed , w hic h changed the base year to 1986-87 and allows cities to adjust the limit annually by either the change in the California per capita income or the percentage cha nge in growth in total assessed valuation due to non residential construction . For population changes , cities now have the option of using either the percentage increase of the City or the percentage increase of the entire county. The law also allows for the exclusion from the lim it of "qualified capital outlay" which includes any appropriation for fixed assets costing over $100 ,000 . The 2019-2020 budget expenditures are well within the statutory limit. It shou ld be noted that future revenues exceeding the limitation require a return of the excess to the taxpayers or a substantial portion of such excess will be forfeited for State uses. COMPUTATION OF APPROPRIATIONS LIMIT 2019-2020 APPROPRIATIONS LIMIT 2018-19 limit (1) Per Capita Income and City population c hange factor applied to 20 18-19 appropriations limit 2019-2020 appropriations lim it APPROPRIATIO NS SUBJECT TO LIMIT Proceeds of Taxes Less Exclusions : Qualified Capita l Outlay Appropriations Subject to Limit Appropriations Marg in $21 ,028 ,001 1.0423 $21 ,917,485 $12 ,382 ,930 1,518 ,000 $10 ,864 ,930 $11 ,052 ,555 (1) Reca lculated as a result of Proposition 111 and in accordance with gu idelines of the League of California Cities . Formal adoption for the FY 1991 -92 recalculated appropriations lim it was approved by the City Counci l on Ju ly 2 , 1991. CITY : TEMPLE CITY F Y: 2019-20 REVENUE TAXES: Property Tax Sales & Use Tax /In lieu Sales Tax Bu siness license T ax Revenue Transient Occupancy Tax Other Taxes : Real Estate Prop. A I Prop. C FROM STATE: Motor Veh icle In Lieu /In Lieu VLF State Cops Grant Gasoli ne Tax Tra ffic Congestion Rel ief Used Oil SB1 OTHER GOVERNMENTS Community Development (CDBG ) Park Bond 1992 & 1996 SB821 Aid to Cities Air Quality Improvement Measure A Measure M MeasureR Measure W LOCAL Special benefit assessments Franchise fees CALCULATION OF PROCEEDS O F TAXES W ork sheet #1 Page 1 of 2 Subtotal Subtotal Subtotal PROCEEDS OF TAXES 3 ,508 ,490 2 ,14 5 ,200 200,000 60,000 180,000 1,343,420 7 ,437 ,110 4 ,817,905 4 ,817 ,905 0 Development fees -Sewer/Park/Public Arts Fines , forfeitures , penal tie s/Traffic Safety Recyclable Reve nue AB939 Reimbu rsement Tru st Fund/Self Ins. Fund USER FEES Bu ilding Permits Parking Permits Encroachment Permits Animal License Vehicle Impound Code Enforcement Shared Maint./Facility Rental Zoning & Plan Check Recreation PW Engineering OTHER MISCELLANEOUS Bus Pass Sales Mise Sundry/Ot he r Reimb Renta l Income CRA and ULD Admin Re imb Subtotal 0 Subtotal 0 Subtotal 0 Funds Included : NO '-PROCEE DS OF TAXES 0 140,000 909,490 41 ,060 10,000 602,660 1,703,210 552,510 14,500 27,000 47,000 425,000 51 7,740 456,880 460,000 2 ,500,630 1,510,000 530,000 80,000 500,000 25,000 15 ,000 600 2 ,660,600 800,000 285,000 160,000 35,000 11 ,000 7 0 ,000 58,350 670,000 575 ,000 80,000 2,744,350 44 ,17 0 114,000 34 ,000 30,000 222 ,170 Exhibit 1, Page 2 ALL TOTAL 3 ,508,490 2 ,14 5 ,200 200 ,000 60,000 180 ,000 1,343,420 7 ,437,110 4 ,817,905 140,000 909,490 41 ,060 10,000 602 ,660 6 ,521 ,115 552 ,510 14 ,500 27 ,000 47,000 425,000 517 ,740 456,8 8 0 460,000 2 ,500,630 1,510,000 530,000 80,000 500,000 25,000 15,000 600 2 ,660,600 800,000 285,000 160,000 35,000 11 ,000 70 ,000 58,350 670 ,000 5 75,000 80,000 2 ,744,350 44,170 114,000 34,000 30 ,000 222 ,17 0 CITY : TEMPLE CITY FY : 2019-20 REVENUE SUB TOTAL (For Worksheet #3) INTEREST EARNINGS (From W ork sheet #3) TOTAL (Use For Worksheet #4) CALCULATION OF PROCEEDS OF TAXES Worksheet #1 Pag e 2 of 2 PROCEE DS O F T AXES 12,255,0151 127,915 1 12,382,930 1 Exhibit 1, Page 3 Funds Incl uded : ALL NO N-PROCEE DS OF TAXES T OTAL 9,83o,96o 1 22 ,085,975 1 133,1351 261 ,o5o 1 9 ,964,0951 22,347,025 1 CllY: TEMPLE CITY FY : 2019-20 A. Non-Interest Tax Proceeds B. Minus Exclusions C . Net Invested Taxes D . Total Non-Interest E. Tax Proceeds as Percent of Budget F. Interest Earnings G. Amount of Interest Earned from Taxes INTEREST EARNINGS PRODUCED BY TAXES Worksheet #2 Page 1 of 1 AMOUNT 12,255 ,015 1,518,000 10,7 37 ,015 22 ,085 ,975 49%1 261 ,o5o I 127,915 1 SO U RCE (Worksheet #2) GF Capital Project (A-B) (Worksheet #2) (C I D) (Budget or Actual) (E *F) H. Amount of Interest Earned from Non -Taxes .__ ___ 13_3....:.,1_3_5_.1 (F-G) plus any CRA Int. Restricted CIP) I. Take results of Steps #G and #H copy to worksheet #2 Exh ibit 1, Page 4 C ITY: TEMPLE CITY FY: 2019-20 A. Pro ceeds of Taxes B. Exclusions C . Appropriations subject to Limitation D. Current Year Limit E. Over/(Under) Limi t CAPITAL PROJECTS General Fund SB1 Prop C SB821 Measure A Measure M MeasureR Measure W ULD Park Acq *PROJECT S U NDER $100 ,000 (G ENERAL FUND) APPROPRIATIONS SUBJECT TO LIMITATION Works heet #3 Page 1 of 1 Amount 12.382,930 1 1,518.ooo 1 10 ,864 ,930 1 21,917,485 1 (11 ,052,555)1 PROCEEDS 500,000 1,200,000 75,000 * 1,775,000 (257,000) 1,518 ,000 Ex hibit 1, Page 5 Source (Worksheet #2) GF Capital Project (A -B) (Worksheet #6) (C -D) NON-PROCEEDS 1,384,000 7 1,000 425,000 800,000 750 ,000 76 ,000 0 35 ,000 3,541 ,000 APPROPRIATIONS LIMIT CALCULATION Worksheet #4 Page 1 of 1 City County Popul ation Percent Popu lat ion 2018-19: 1-1-18 36,447 1 10 ,245 ,275 1-1-19 36,583 0.37%1 10 ,244 ,542 Amount Source A. LAST YEAR'S LIM IT $21 .o28.oo1 I B. ADJUSTM EN T FACTORS : 1. Population % (greater of City or CounJ 1.0037 1 (Worksheet #5) 2. In flation % (from State Finance or As 1.0385 C. ANNUAL A Total Adj ustment Fa ctor 1.0423 1 (C1 • C2) D. OTHER ADJUSTMEN TS : 889,484 1 (A* B) Lost Resp on sibility (-) ~ Transfer to private (-) Tra nsfer to fees(-) Assumed Responsibil ity(+) E. TOTAL ADJUSTMENTS Sub-total Ol F . THIS YEAR'S LIMIT 889 ,484 1 (C +D) $21 ,917 ,4851 (A + E) Exhibit 1, Page 6 Percent -0.0 1%1 Exhibit 1, Page? ~t-4T O~t-,./' .... li' "1- <r 'P a.. z w n 0 , .. DEPARTMENT OF c FINANCE GAVIN N&:WSCM-GOVI!:R.NORI ...._C.t ~Dfil,..,,.. ------;::-9-:-1 =-5 -:-L-:S::::T~R II:::-:O::=T-=.-=a~A=:=CR::::::A~M:.:-E N::...:T:-:O:--=C==-.A~.===-9 ==5B~I 4:::.-3::-:7::-::0:-:6:-:.::==-:w w=w_:::,...!:DD:.!F'~. C:;::A.!:.Q:!..!D~V 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 li m it for fiscal year 2019-20. Attachment A provides the change in California's per capita perso nal 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 c ity and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas . The population percentage change da t a excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. Californ ia Revenue and Taxation Code section 2228 provides additional information regard ing the appropriations lim it. Article XIII B, section 9(C) of the California Constitution exempts certa in special districts from the appropri ations limit calculation mandate. The code section and the Californ ia Constituti on can be accessed at the following website : http ://leginfo.leg islature .ca.gov/faces/codes .xhtml. Special districts required by law to calculate their appropriations limit must p resent the ca lculation as part of their annual audit. Any questions special districts have on this requ irement should be directed to their county, district legal counsel , or the law itself. No st ate ag e ncy reviews the lo cal appropriations limits. Population Certification The population certification program applies only to cities and counties . California Revenue and Taxation Code section 11005.6 mandates Finance t o automatically certify an y popula tio n 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 regard ing this data, please c ontact the Demographic Resea rc h Un it at (916) 323-4086 . KEELY BOSLER Director By : Vivek Viswanathan Chief Deputy Director Attachment Exhi bit 1, Page 8 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 Ye ar (FY) Percentage change 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 C hange= 0.47 percent Per Capita Cost of Living converted to a ratio : Population converted to a ratio: Calculation of factor for FY 2019-20 : 3.85 + 100 = 1.0385 100 0.47 + 100 = 1.0047 100 1.038 5 X 1.0047 = 1.04 34 .-------------· ··-------· Exhibit 1, Page 9 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 I2liL County ~!I[!<!ID1 ~bacgg ~Qill.lli11i2D MiDUli liili!<IUliiQDli ~QilUii11i2D 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 Ca labasas -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 C laremont 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 Cu lver 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 1 14 ,212 Duarte -0 .25 22 .007 21 ,952 21 ,952 El Monte 0 .76 116,315 117,204 117 ,204 EISegundo -0.01 17,067 17,066 17 ,066 Gardena -0.19 61 ,158 61 ,042 61 ,042 Glenda le 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 19,84 7 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 install ations and group quarters residents in state mental institutions , state and federal correctiona l institu tions and veteran homes. Exhibit 1, Page 1 0 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 !21i1.. County Per cent Change ---p opulatio n M i nus Exclusions popylat!on Ci ty 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 ,4 59 81 ,352 81 ,352 La Mirada -0.05 49,585 4 9,558 49,558 Lancaster 0.28 156,841 157,273 161 ,604 La Puente 0.19 40,719 4 0,795 40,795 LaVerne -0.11 33.239 33,201 33,201 Lawndale -0.27 33,527 33,4 36 33,4 36 Lomita -0.06 20,776 20 ,763 20,763 Long Beach -0.21 475,921 474,94 1 475,013 Los Angeles 0.05 4 ,035,356 4,037,190 4 ,04 0 ,079 Lynwood -0.22 7 1,497 71 ,343 71 ,343 Malibu -7.42 13,011 12,046 12,046 Manhattan Beach -0.24 36,010 35,922 35,922 Maywood -0.2 1 28,029 27 ,971 27,971 Monrovia -0.1 4 38,582 38,529 38 ,529 Montebello -0.1 1 64 ,316 64 ,247 64,247 Monterey Park -0.38 62,061 61 ,828 61 ,828 Norwa lk -0.12 106,077 105,950 106 ,744 Palmdal e 0.05 157,782 157,854 157,854 Pa los Verdes Estates -0.26 13,579 13,544 13,544 Paramount -0.01 55,503 55,4 97 55,4 97 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 Ran cho Palos Verdes -0.24 4 2,647 4 2,543 42,560 Re d ond o Beach 0.16 68.361 68,473 68,4 73 Rolling Hills -0 .32 1 ,898 1 ,892 1 ,892 Rolling Hills Estate s -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 S an Fernando 1.32 24 ,593 24,9 18 24 ,918 San Gabriel -0.22 41 ,270 41 ,178 41 ,1 78 San Marino -0.06 13,360 13,352 13 ,352 Sant a 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 Sig na l H ill 0 .31 11 ,758 11 ,795 11 ,79 5 South El Monte 0 .95 21 ,092 21 ,293 21 ,293 •Exclusions include residents o n federal military inst allations and group quarters residents in state mental institutions , state and federal correctional institutions and veteran homes . Exh ib it 1, Page 11 Fiscal Yea r 2019-20 County City Sou th Gate Sou th Pasadena Temple City Torrance Vernon Walnut West Covina West Hollywood Westlake Village Whittier Unincorporated County Total Attachment B Annual Percent Change in Population Minus Exclusions* January 1, 2018 to January 1, 2019 and Total Population, January 1 , 2019 I21al percent Change ---populatjon Mjnus Exclysjons -popylat!on 2018-2019 1-1-18 1-1-19 1-1 -2019 -0.25 97,019 96,777 96,777 -0 .12 26,276 26,245 26,245 0.37 36,447 36,583 36,583 -0 .24 148,408 148,054 148 ,054 -0 .33 302 301 301 -0 .02 30,557 30,551 30,551 -0 .25 108,388 108,116 108,116 -0 .17 36,723 36,660 36,660 -0 .86 8 ,451 8 .378 8 ,378 -0.26 87,756 87,526 87,526 -0 .87 1 ,055,092 1,045,918 1 ,046,858 -0.01 10,245,275 10,244,542 10,253,7 16 •Excl usions in clude residents on federal military install ations and group quarter s residents in state mental instituti ons , state and federal correctional insti tutions and veteran homes. Fisca l Yea r 20 19-20 County Los Angeles Incorporated County Total Madera Incorporated County Total Marin Incorporated County Total Mariposa Incorporated County Tota l Mendocino Incorporated County Total Merced Incorporated County Total Modoc In corporated County Tota l Mono Incorporated County Total Monterey Incorporated County Total Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2018 to January 1, 2019 p ercent Change p o pylat ion Mjnys Exc lysjons 2018-1 9 1-1-18 1-1 -19 0.09 9,190,183 9 ,198,624 -0 .0 1 10,24 5,275 10 ,244,542 1.27 78,119 79,109 1.12 151 ,78 2 153,4 84 -0.02 193.278 193,248 -0.01 258,566 258,540 0.00 0 0 -0.18 18,013 17,981 -0.49 29,378 29,233 -0.14 88,967 88,839 1 .71 183,570 186,71 4 1 .28 278.140 281 ,692 1 .10 2,725 2 ,7 55 0.11 9 ,511 9 ,521 -0.74 8 ,064 8 ,004 -0.82 13,595 13,484 0.83 319,677 322,330 0.91 4 25 ,870 429,764 Exh ibit 1, Page 12 *Exclusions include res ide nts on federal military installatio ns and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.