City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution approving and adopting the
Annual Appropriations Limit for Fiscal Year 2011/2012.
BACKGROUND/DISCUSSION:
Proposition 4, approved by the voters on November 6, 1979, added Article XIII B to
the State Constitution. Article XIII B places an appropriations limit on State and local
governments and requires them to establish their appropriations limit by resolution
each year at a regularly scheduled meeting or a noticed special meeting.
As adopted in 1979, Article XIII B provided that Fiscal Year 1978/1979 would be
considered the “base year” used to calculate the appropriations limit. Article XIII B
was amended by the voters in 1990 through the approval of Proposition 111, which
provided Fiscal Year 1986/1987 would become the “base year.”
FISCAL ANALYSIS:
As mentioned, the base year for calculating the appropriations limit is Fiscal Year
1986/1987. Each subsequent year, the total annual appropriations subject to the
limit may not exceed the appropriations limit for the prior year adjusted for changes
in the cost-of-living and city or county population.
Based on the City Manager’s/Executive Director’s Proposed Budget for Fiscal Year
2011/2012, the Finance Department has calculated the City’s Fiscal Year 2011/2012
Appropriations Limit to be $81,159,589. The City’s Fiscal Year 2011/12
Meeting Date: 06/13/11 Item Number: C-2
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving and
Adopting the Annual Appropriations Limit for Fiscal Year 2011/2012.
Contact Person/Dept.: Mary V. Noller,
Budget & Accounting Operations
Phone Number: (310) 253-6012
Fiscal Impact: Yes [] No [X] General Fund: Yes [ ] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: (E-Mail) Agenda and Meetings – City Council (06/08/11);
Notification published in the Culver City News on May 26, 2011 and June 2, 2011.
Department Approval:
Jeff Muir (06/07/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/08/11)
Chief Financial Officer Review:
Jeff Muir (06/08/11)
City Manager Approval:
John M. Nachbar (06/08/11) City of Culver City, California
Agenda Item Report
appropriations from the proposed budget that are applicable to this limit are
$44,811,329, which is $36,348,260 under the appropriations limit.
ATTACHMENTS:
1. Proposed Resolution
2. Exhibit A – Analysis of Effect of Appropriations Limit on Estimated Revenue
3. Exhibit B – Appropriations Limit
4. Schedule I – Analysis of Estimated Revenues
MOTION:
That the City Council:
Adopt a Resolution approving and adopting the annual Appropriations Limit for
Fiscal Year 2011/2012.
MEETING DATE: 6/13/11
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2011-12
ATTACHMENTS
Pages
1. Proposed Resolution No. 2011-RXXX................................................................ 1 - 2
2. Exhibit A – Analysis of Effect of Appropriations Limit on Estimated Revenue .... 3
3. Exhibit B – Appropriations Limit.......................................................................... 4
4. Schedule I – Analysis of Estimated Revenues ..................................................... 5 – 6
12CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2011-2012
Proposed Estimated Revenues for FY 2011-2012 161,335,662 $
Less Estimated Revenues for
Enterprise Funds 40,526,129 $
Internal Service Funds 17,228,704 (57,754,833)
Total Governmental Type Funds 103,580,829
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (48,085,951)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I) 55,494,878 $
Less Voter Approved Indebtedness 0
Less Qualified Capital Outlay (10,495,906)
Less Federal Mandates:
PARS 49,233
FLSA-Fire 138,410 (187,643)
Estimated Revenues subject to Appropriations Limit 44,811,329 $
Appropriations Limit FY 2011-2012 (Exhibit B) 81,159,589
Amount Under Limit 36,348,260 $
3CITY OF CULVER CITY
EXHIBIT B
2011-2012 APPROPRIATIONS LIMIT
1. FY 2010-2011 Appropriations Limit 78,872,647 $
2. 2011-2012 Change in Per Capita Personal Income: 2.51%
3. 2011-2012 Change in Population: 0.16%
4. Ratio of Change: (1.0251 x 1.0038)* 1.0290
5. FY 2011-2012 Appropriations Limit 81,159,589 $
* Multiply FY 2010-2011 appropriations limit by the product of the percentage change
in the California per capital personal income figure ([2.51 + 100]/100 = 1.0251) times
the percentage change in the Los Angeles County population ([0.38 + 100]/100 =
1.0038) as provided by the Department of Finance.
4CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2011-2012
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
REVENUE
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES 3,925,000 $ -
OTHER TAXES:
Sales Tax 16,542,000 -
Public Safety Sales Tax 342,000 -
Transient Occupancy Tax 3,050,000 -
Franchise Tax - 1,350,000 $
Business License Tax 10,050,000 -
Real Property Transfer Tax 1,000,000 -
Utility User Tax 15,120,000 -
Com/Ind Development Tax 250,000 -
TOTAL OTHER TAXES 46,354,000 $ 1,350,000 $
LICENSES AND PERMITS - 1,949,310
FINES, FORFEITURES AND PENALTIES - 4,099,700
USE OF MONEY AND PROPERTY - 329,000
CHARGES FOR CURRENT SERVICE - 11,705,027
INTER FUND/DEPARTMENTAL - 5,100,030
INTERGOVERNMENTAL 3,396,727 234,500
OTHER REVENUE - 242,230
TOTAL GENERAL FUND
BEFORE INTEREST 53,675,727 $ 25,009,797 $
PERCENT 68.2% 31.8%
INTEREST 244,894 114,106
TOTAL GENERAL FUND 53,920,621 $ 25,123,903 $
5CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2011-2012
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
GRANTS OPERATING FUND - 1,217,003 $
BUILDING SURCHARGE FUND - 78,000
SECTION 8 FUND - 1,790,306
PROP A LOCAL RETURN - 674,000
PROP C LOCAL RETURN - 479,919
COMMUNITY DEVELOPMENT IMPACT FEES - 6,000
SPECIAL GAS FUND - 1,082,000
PARK FACILITIES - 35,000
PARKING IMPROVEMENT - 1,131,500
CAPITAL IMPROVEMENT AND ACQUISITION - 1,654,000
GRANTS CAPITAL - -
CDBG BLOCK GRANT FUNDS - 72,097
ASSET SEIZURE FUND - -
ART IN PUBLIC PLACES - 149,645
LANDSCAPE MAINTENANCE DISTRICT - 120,578
CO-OP AGREEMENTS - 14,117,000
TRAFFIC CONGESTION RELIEF FUND - -
MEASURE R FUNDS - 355,000
GRAND TOTAL 53,920,621 $ 48,085,951 $ |1013|