HomeMy Public PortalAboutCity Council_Resolution No. 20-5480_Annual Appropriations Limit for FY 2020-21RESOLUTION NO. 20-5480
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY, CALIFORNIA ADOPTING THE ANNUAL APPROPRIATIONS LIMIT
FOR THE FISCAL YEAR (FY) 2020-2021
WHEREAS, the voters of California in November, 1979 added Article XIIIB (Proposition 4) to the
State Constitution placing various limitations on the appropriations of the State and local governments; and
WHEREAS, the voters of California in June, 1990 modified Article XIIIB by approving Proposition
111 and SB 88 (Chapter 60/90) which revised the annual adjustment factors to be applied 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, the City of Temple City has complied with all the provisions of Article XIIIB in
determining the Appropriations Limit for FY 2020-21 as provided in the worksheets attached hereto as
Exhibit 1.
NOW, THEREFORE, the City Council of the City of Temple City does resolve, determine and order
as follows:
SECTION 1. That the Appropriations Limit for FY 2020-21 shall be $22,767,883, with
appropriations subject to the limit of $7,351,555, or $15,416,328 less than the limit.
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED this 29th day of Jun
ATTEST:
JA 'C'
- . • �r . / o dlerk
APPROVED AS TO FORM:
Greg phy, City A m
I hereby certify that the foregoing resolution, Resolution No 20-5481, was duly passed, approved and
adopted by the City Council of the City of Temple City at a regular meeting held on the 29u' day of June,
2020, by the following vote:
AYES:
Councilmember- Man, Sternquist, Vizcarra, Yu, Chavez
NOES:
Councilmember- None
ABSENT:
Councilmember- None
ABSTAIN:
Councilmember- None
M'41"Mirg �
EXHIBIT 1, Page 1
ARTICLE XIII -13 OF THE CALIFORNIA CONSTITUTION (GANN INITIATIVE)
Effective July 1, 1980, Proposition 4 (Gann) established a limit on the City's expenditures from tax
revenues based on 1978-79 appropriations. This limit is adjusted annually by the Consumer Price
Index and population changes. Non -Proceeds of Taxes (Fines and Forfeitures and User Fees) were
not subject to this limit.
In 1989-90 Proposition 111 was passed, which 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
change 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 limit of
"qualified capital outlay" which includes any appropriation for fixed assets costing over $100,000.
The 2020-2021 budget expenditures are well within the statutory limit.
It should 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
2020-2021 APPROPRIATIONS LIMIT
2019-20 limit (1)
$21,917,485
Per Capita Income and City population change
factor applied to 2019-20 appropriations limit 1.0388
2020-2021 appropriations limit $22P767,883
APPROPRIATIONS SUBJECT TO LIMIT
Proceeds of Taxes $13,046,555
Less Exclusions:
Qualified Capital Outlay 5,695,000
Appropriations Subject to Limit $7,351,555
Appropriations Margin $15,416,328
(1) Recalculated as a result of Proposition 111 and in accordance with guidelines of the League of
California Cities. Formal adoption for the FY 1991-92 recalculated appropriations limit was
approved by the City Council on July 2, 1991.
CITY: TEMPLE CITY
FY: 2020-21
REVENUE
TAXES:
Property Tax
Sales & Use Tax 1 In Lieu Sales Tax
Business License Tax Revenue
Transient Occupancy Tax
Other Taxes: Real Estate
Prop. A / Prop. C
FROM STATE:
Motor Vehicle In Lieu / In Lieu VLF
State Cops Grant
Gasoline Tax
Used Oil
SB1
SB2
State Parks Grant
OTHER GOVERNMENTS
Community Development (CDBG)
Park Bond 1992 & 1996
S8821 Aid to Cities
Air Quality Improvement
Measure M
Measure R
Measure W
LOCAL
Special benefit assessments
Franchise fees
Development fees-Sewer/Park/Public Arts
Fines, forfeitures, penalties/Traffic Safety
Recyclable Revenue
AB939 Reimbursement
USER FEES
Building 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
Misc Sundry/Other Reimb
Rental Income
CRA and ULD Admin Reimb
CALCULATION OF
PROCEEDS OF TAXES
Worksheet #1
Page 1 of 2
Funds Included:
Exhibit 1, Page 2
ALL
PROCEEDS NON -PROCEEDS
OF TAXES OF TAXES TOTAL
3,609,705
3,609,705
1,823,420 1,823,420
179,590 179,590
48,000 48,000
130,000 130,000
1,141-9051 1,141,905
Subtotal 6,753,030 179,590 6,932,620
5,018,620
140,000
664,620
10,000
424,390
160,000
2,900,000
Subtotal 5,018,620 4,299,010
440.0
388,350
391,000
Subtotal 1,219,430
291,500
5,04-8-.620
140,000
664,620
10,000
424,390
160,000
2,900,000
9,317,630
186,000
14,500 ...�
44,000
47,000
440,080
388,350
391,000
1,510,930
1,532,510 1, 532, 510
530,000 530,000
65,000 65,000
400,000 400,000
10,000 10,000
15,000 15,000
Subtotal 0 2,552,510 2,552,510
Subtotal
32,145
37,545 37,545
103,500 103,500
32,600 32,600
24,300 24,300
Subtotal 0 197,945 197,945
792,830
792,830
226,560
226,560
164,460
164,460
41,000
41,000
11,000
11,000
56,900
56,900
58,500
58,500
824,490
824,490
505,000
505,000
32,145
0
2,712,885
2,712,885
32,145
37,545 37,545
103,500 103,500
32,600 32,600
24,300 24,300
Subtotal 0 197,945 197,945
CITY: TEMPLE CITY
FY: 2020-21
REVENUE
SUB TOTAL (For Worksheet #3)
INTEREST EARNINGS
(From Worksheet #3)
TOTAL (Use For Worksheet #4)
on"
CALCULATION OF
PROCEEDS OF TAXES
Worksheet #1
Page 2 of 2
Exhibit 1, Page 3
Funds Included: ALL
PROCEEDS NON -PROCEEDS
OF TAXES OF TAXES TOTAL
12 991,080 1 10,233,440 23,224 520
55 475 (— 123,475 178,9501
13,046,5551 10,356,915 23,403,470
INTEREST EARNINGS
PRODUCED BY TAXES
Worksheet #2
Page 1 of 1
CITY: TEMPLE CITY
FY: 2020-21
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
H. Amount of Interest Earned from
Non -Taxes
I. Take results of Steps #G and #H copy to worksheet #2
AMOUNT SOURCE
I 12,yul'utsu I
(vvorKsneet vz)
5,695,000
GF Capital Project
7,296,080
(A - B)
23,224,520
(Worksheet #2)
310/6]
(C / D)
178,950
(Budget or Actual)
55,475
(E " F)
123,475
F -G) plus any CRA Int,
Restricted CIP)
Exhibit 1, Page 4
CITY: TEMPLE CITY
FY: 2020-21
A. Proceeds of Taxes
B. Exclusions
C. Appropriations subject to Limitation
D. Current Year Limit
E. Over/(Under) Limit
CAPITAL PROJECTS
S61
CDBG
Prop C
SB821
Measure A
Measure M
Measure R
Measure W
ULD
State Parks Grant
Park Acq
*PROJECTS UNDER $100,000
(GENERAL FUND)
APPROPRIATIONS SUBJECT
TO LIMITATION
Worksheet #3
Page 1 of 1
Amount Source
' 1V,VVV 1
`Y YVI F%Q1 lwlek ALJ
5,695,000
GF Capital Project
7,351,55=5
(A - B)
22,767,883
(Worksheet #6)
15,416,328
(C - D)
PROCEEDS NON -PROCEEDS
OF TAXES
OF TAXES
1,345,000
25,000
2,900,000
71,000
425,000
1,136,000
1,244,000
76,000
1,075,000,
2,900,000
15,000
5,781,000
5,431,000
(86,000)
5,695,000
Exhibit 1, Page 5
Exhibit 1, Page 6
APPROPRIATIONS LIMIT CALCULATION
Worksheet #4
Page 1 of 1
City
County
Population
Percent
Population Percent
2019-20:
1-1-19
36,098
10,175,203
1-1-20
36,150
0.14%
10,163,868 L-0.11
Amount
Source
A. LAST YEAR'S LIMIT
$21,917,485
B. ADJUSTMENT FACTORS:
1. Population % (greater of City or County factor)
1.0014
(Worksheet #5)
2. Inflation % (from State Finance or Assessor)
1.0373
C. ANNUAL Al Total Adjustment Factor
1.0388
(Cl - C2)
D. OTHER ADJUSTMENTS:
850,398
(A * B)
Lost Responsibility (-)
Transfer to private (-)
Transfer to fees (-)
Assumed Responsibility (+)
E. TOTAL ADJUSTMENTS
Sub -total
0
F. THIS YEAR'S LIMIT
850 398
(C + D)
(A + E)
$22 767,883
EXHIBIT 1, Page 7
May 2020
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, 2020, in
conjunction with a change in the cost of living, or price factor, to calculate their appropriations
limit for fiscal year 2020-21. 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 2020-21 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: httr)://Ieainfo.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, 2020.
Please Note: The prior year's city population estimates may be revised. The per capita personal
income change is based on historical data. Given the stay-at-home orders due to COVID-19,
growth in the coming years may be substantially lower than recent trends.
If you have any questions regarding this data, please contact the Demographic Research Unit at
(916 ) 323-4086.
/s/ Keely Martin Bosler
KEELY MARTIN BOSLER
Director
Attachment
EXHIBIT 1, Page 8
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 2020-21 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2020-21 3.73
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2020-21
appropriation limit.
2020-21:
Per Capita Cost of Living Change = 3.73 percent
Population Change = 0.22 percent
Per Capita Cost of Living converted to a ratio:
Population converted to a ratio:
3.73 + 100 = 1.0373
100
0.22 + 100 = 1.0022
100
Calculation of factor for FY 2020-21: 1.0373 x 1.0022 = 1.0396
EXHIBIT 1, Page 9
Fiscal Year 2020-21
Total
County
Percent Chan a
-- Pol2ulation Minus
Exclusions --
Population
City
2019-2020
1-1-19
1-1-20
1-1-2020
Los Angeles
Agoura Hills
-0.27
20,622
20,566
20,566
Alhambra
0.00
86,793
86,792
86,792
Arcadia
-0.09
57,262
57,212
57,212
Artesia
-0.27
16,448
16,404
16,490
Avalon
-0.25
3,939
3,929
3,929
Azusa
0.24
49,537
49,658
49,658
Baldwin Park
-0.08
76,311
76,252
76,252
Bell
0.06
36,510
36,531
36,531
Bellflower
-0.16
78,239
78,110
78,110
Bell Gardens
-0.31
42,579
42,449
42,449
Beverly Hills
-0.45
33,926
33,775
33,775
Bradbury
-0.38
1,056
1,052
1,052
Burbank
0.35
105,496
105,861
105,861
Calabasas
0.03
24,185
24,193
24,193
Carson
-0.05
93,153
93,108
93,108
Cerritos
0.00
49,995
49,994
49,994
Claremont
-0.18
35,872
35,807
35,807
Commerce
-0.47
12,929
12,868
12,868
Compton
-0.18
98,206
98,032
98,032
Covina
0.33
48,683
48,846
48,846
Cudahy
-0.23
24,227
24,172
24,172
Culver City
0.54
39,493
39,705
39,705
Diamond Bar
-0.23
57,308
57,177
57,177
Downey
-0.29
113,863
113,529
113,529
Duarte
-0.04
21,681
21,673
21,673
EI Monte
0.10
116,563
116,675
116,675
EI Segundo
-0.21
16,812
16,777
16,777
Gardena
0.07
60,892
60,937
60,937
Glendale
0.22
204,883
205,331
205,331
Glendora
0.44
51,840
52,067
52,067
Hawaiian Gardens
-0.25
14,685
14,649
14,649
Hawthorne
-0.19
87,071
86,903
86,903
Hermosa Beach
-0.14
19,641
19,614
19,614
Hidden Hills
0.32
1,862
1,868
1,868
Huntington Park
-0.21
59,642
59,515
59,515
Industry
0.00
427
427
427
Inglewood
-0.33
112,345
111,971
111,971
Irwindale
-0.62
1,443
1,434
1,434
EXHIBIT 1, Page 10
Fiscal Year 2020-21
P"
Total
County
Percent Change
-- Population Minus
Exclusions ---
Population
City
2019-2020
1-1-19
1-1.20
1-1-2020
La Canada Flintridge
-0.18
20,497
20,461
20,461
La Habra Heights
-0.16
5,470
5,461
5,461
Lakewood
-0.31
80,168
79,919
79,919
La Mirada
-0.27
49,007
48,877
48,877
Lancaster
0.10
157,174
157,338
161,699
La Puente
0.09
40,532
40,568
40,568
La Verne
0.03
33,289
33,300
33,300
Lawndale
-0.24
32,879
32,799
32,799
Lomita
-0.32
20,614
20,549
20,549
Long Beach
-0.12
472,730
472,140
472,217
Los Angeles
-0.06
4,010,280
4,007,960
4,010,684
Lynwood
-0.39
71,549
71,269
71,269
Malibu
-0.54
11,784
11,720
11,720
Manhattan Beach
-0.48
35,419
35,250
35,250
Maywood
-0.30
27,988
27,904
27,904
Monrovia
-0.06
37,956
37,935
37,935
Montebello
-0.31
63,742
63,544
63,544
Monterey Park
-0.34
60,943
60,734
60,734
Norwalk
-0.21
105,087
104,862
105,717
Palmdale
-0.24
157,117
156,737
156,737
Palos Verdes Estates
-0.30
13,230
13,190
13,190
Paramount
-0.19
55,569
55,461
55,461
Pasadena
0.11
144,686
144,842
144,842
Pico Rivera
-0.03
63,390
63,374
63,374
Pomona
0.09
154,675
154,817
154,817
Rancho Palos Verdes
-0.26
41,821
41,714
41,731
Redondo Beach
-0.24
67,154
66,994
66,994
Rolling Hills
-0.32
1,880
1,874
1,874
Rolling Hills Estates
0.39
8,035
8,066
8,066
Rosemead
0.30
54,198
54,363
54,363
San Dimas
-0.28
34,042
33,945
33,945
San Fernando
1.65
24,798
25,207
25,207
San Gabriel
-0.22
40,194
40,104
40,104
San Marino
-0.14
13,106
13,087
13,087
Santa Clarita
0.10
221,703
221,932
221,932
Santa Fe Springs
-0.29
18,303
18,250
18,295
Santa Monica
-0.13
92,480
92,357
92,357
Sierra Madre
-0.25
10,843
10,816
10,816
Signal Hill
-0.27
11,744
11,712
11,712
South EI Monte
1.98
20,792
21,204
21,204
P"
EXHIBIT 1, Page 11
Fiscal Year 2020-21
Total
County
Percent Change
-- Population Minus
Exclusions --
Pormlation
City
2019-2020
1-1-19
1-1-20
1-1-2020
South Gate
-0.21
97,211
97,003
97,003
South Pasadena
-0.26
25,524
25,458
25,458
Temple City
0.14
36,098
36,150
36,150
Torrance
-0.26
145,922
145,546
145,546
Vernon
-0.34
298
297
Walnut
-0.16
29,977
29,929
29,929
West Covina
-0.30
106,313
105,999
105,999
West Hollywood
-0.36
36,335
36,203
36,203
Westlake Village
-0.18
8,227
8,212
8,212
Whittier
-0.31
87,073
86,801
86,801
Unincorporated
-0.50
1,038,938
1,033,771
1,034,689
County Total
-0.11
10,175,203
10,163,868
10,172,951
Fiscal Year 2020-21
Attachment C
Annual Percent Change In Population Minus Exclusions*
January 1, 2019 to January 1, 2020
County
EXHIBIT 1, Page 12
*Exclusions include residents on federal military installations and group quarters residents in state mental
institutions, state and federal correctional institutions and veteran homes.
2019-20
1-1-19
1-1-20
Los Angeles
Incorporated
-0.07
9,136,265
9,130,097
County Total
-0.11
10,175,203
10,163,868
Madera
Incorporated
0.34
77,618
77,881
County Total
0.17
152,164
152,417
Morin
Incorporated
-0.60
193,050
191,884
County Total
-0.60
257,901
256,353
Mariposa
Incorporated
0.00
0
0
County Total
0.04
17,979
17,986
Mendocino
Incorporated
-0.16
29,058
29,011
County Total
-0.49
88,218
87,785
Merced
Incorporated
1.64
184,863
187,894
County Total
1.04
279,499
282,405
Modoc
Incorporated
-0.81
2,849
2,826
County Total
-0.54
9,556
9,504
Mono
Incorporated
-0.36
7,887
7,859
County Total
-0.40
13,385
13,332
Monterey
Incorporated
-0.36
319,258
318,115
County Total
-0.31
425,654
424,349
*Exclusions include residents on federal military installations and group quarters residents in state mental
institutions, state and federal correctional institutions and veteran homes.