City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt the Resolution approving and adopting the
Annual Appropriations Limit for Fiscal Year 2008-09.
BACKGROUND/DISCUSSION:
The Appropriations Limit, otherwise known as the Gann Limit or 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 XIIIB provided that Fiscal Year 1978-79 would be
considered the “base year” used to calculate the appropriations limit. Article XIIIB
was amended by the voters in 1990 with 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
1986-87. 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.
Meeting Date: 6/16/08 Item Number: C-2
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2008-09.
Contact Person/Dept.: Mary V. Noller,
Budget & Finance
Phone Number: (310) 253-6012
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [ ] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification:
Notification published in the Culver City News on May 29, 2008 and June 5, 2008;
Master E-Mail Notification List (06/11/08);
Department Approval:
Jeff Muir (06/11/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/11/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (06/11/08)
City Manager Approval:
Jerry B. Fulwood (06/12/08) City of Culver City, California
City Council Agenda Item Report
Based on the proposed 2008-09 budget, the Finance Department has calculated the
City’s 2008-09 Appropriations Limit to be $79,229,281. The City’s 2008-09
appropriations that are applicable to this limit are expected to be $30,357,049 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 the Resolution approving and adopting the Annual Appropriations Limit for
Fiscal Year 2008-09.
MEETING DATE: 6/16/08
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2008-09.
ATTACHMENTS
Pages
1. Proposed Resolution No. 2008-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— 6RESOLUTION NO. 2008-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2008-2009.
WHEREAS, the voters of California on November 6, 1979, added Article XIIIB
to the State Constitution placing various limitations on the appropriations of the State and
local governments;
WHEREAS, Article XIIIB, as amended by Proposition III, provides that the
appropriations limit for the fiscal year 1990-1991, and years thereafter, is calculated by
adjusting the base year appropriations of fiscal year 1986-1987 for the changes in the cost of
living and City population;
WHEREAS, the City of Culver City has complied with all of the provisions of
Article XIII B as amended in determining the appropriations limit for fiscal year 2008-2009;
WHEREAS, the information necessary for establishing appropriations limit for
fiscal year 2008-2009 is attached in Exhibit "A", which is incorporated herein by this
reference as though set forth in full.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY,
CALIFORNIA, RESOLVES AS FOLLOWS:
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281. The appropriations limit for fiscal year 2008-2009 is hereby established
as $79,229,281 in accordance with Article XIII B of the State Constitution as more fully
described in Exhibit "A", attached hereto and incorporated herein.
APPROVED and ADOPTED this day of , 2008.
D. SCOTT MALSIN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney|10101010101010101010 10
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28CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2008-2009
Proposed Estimated Revenues for FY 2008-2009 $ 157,824,067
Less Estimated Revenues for
Enterprise Funds $ 42,030,601
Internal Service Funds 18,888,952 (60,919,553)
Total Governmental Type Funds 96,904,514
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (39,264,968)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I)
$ 57,639,546
Less Voter Approved Indebtedness o
Less Qualified Capital Outlay (8,588,118)
Less Federal Mandates:
PARS 46,390
FLSA-Fire 132,806 (179,196)
Estimated Revenues subject to Appropriations Limit $ 48,872,232
Appropriations Limit FY 2008-2009 (Exhibit B) 79,229,281
Amount Under Limit $ 30,357,049
3CITY OF CULVER CITY
EXHIBIT B
2008-2009 APPROPRIATIONS LIMIT
1. FY 2007-2008 Appropriations Limit
2. 2008-2009 Change in Per Capita Personal Income:
3. 2008-2009 Change in Population:
4. Ratio of Change: (1.0429 x 1.0032)*
5. FY 2008-2009 Appropriations Limit
$ 75,727,832
$ 79,229,281
1.0462
4.29%
0.32%
* Multiply FY 2007-2008 appropriations limit by the product of the percentage change
in the California per capital personal income figure (1.0429) times the percentage
change in the Los Angeles County population (1.0032) as provided by the Department
of Finance.
4CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2008-2009
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
REVENUE
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES $ 4,113,000
_
OTHER TAXES:
Sales Tax 17,793,000
_
Public Safety Sales Tax 360,000
-
Transient Occupancy Tax 2,850,000
-
Franchise Tax $ 1,300,000
Business License Tax 10,150,000
Real Property Transfer Tax 1,500,000
-
Utility User Tax 14,468,600
_
Com/Ind Development Tax 1,180,000
TOTAL OTHER TAXES $ 48,301,600 $ 1,300,000
LICENSES AND PERMITS 2,573,300
FINES, FORFEITURES AND PENALTIES 4,493,500
USE OF MONEY AND PROPERTY 329,000
CHARGES FOR CURRENT SERVICE 10,825,640
INTER FUND/DEPARTMENTAL 6,029,299
INTERGOVERNMENTAL 2,947,104 315,552
OTHER REVENUE 3,186,238
TOTAL GENERAL FUND
BEFORE INTEREST $ 55,361,704 $ 29,052,529
PERCENT 65.6% 34.4%
INTEREST 623,042 326,958
TOTAL GENERAL FUND $ 55,984,746 $ 29,379,487
5CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2008-2009
PROCEEDS
OF TAXES
NON-PROCEEDS
OF TAXES
GRANTS OPERATING FUND $ 1,128,945
BUILDING SURCHARGE FUND - 98,000
SECTION 8 FUND 2,053,880
PROP A LOCAL RETURN - 677,000
PROP C LOCAL RETURN 721,959
COMMUNITY DEVELOPMENT IMPACT FEES - 3,000
SPECIAL GAS FUND - 756,000
PARK FACILITIES - 56,000
PARKING IMPROVEMENT - 983,250
CAPITAL IMPROVEMENT AND ACQUISITION 1,470,000
GRANTS CAPITAL 1,355,575
CDBG BLOCK GRANT FUNDS 298,008
ASSET SEIZURE FUND
ART IN PUBLIC PLACES - 167,000
LANDSCAPE MAINTENANCE DISTRICT - 116,864
GRAND TOTAL
$ 55,984,746 $ 39,264,968|1013|