City of Culver City, California
City Council Agenda Item Report
Meeting Date: 6/25/07 Item Number: A-2
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2007-08.
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: [X] Attachments: [X]
Public Notification:
Master Notification List 06/20/07);
Department Approval:
Marlee Chang (06/20/07)
City Attorney Approval:
Carol Schwab (by H. Iker) (06/18/07)
City Controller Approval:
Marlee Chang (06/20/07)
City Manager Approval:
Jerry B. Fulwood (06/20/07)
RECOMMENDATION:
Staff recommends the City Council adopt the Resolution approving and adopting the
Annual Appropriations Limit for Fiscal Year 2007-08.
BACKGROUND:
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.
City of Culver City, California
City Council Agenda Item Report
This year, during preparation of the Appropriations Limit, staff and the City’s auditors
noticed an error. Accordingly, the error has been corrected and this year’s
Appropriations Limit has been calculated using the corrected figure. (Note: This
error did not result in any conflict with the requirements of Article XIII B.) Based on
the proposed 2007-08 budget and the revised 2006-07 Appropriations Limit from our
auditors Lance Soll Lunghard, the Budget & Finance Office has calculated the City’s
2007-08 Appropriations Limit to be $75,727,832. The City’s 2007-08 appropriations
that are applicable to this limit are expected to be $45,979,118, well beneath the
ceiling set by the Appropriations Limit required by the State Constitution.
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
5. Original 2006-07 Appropriations Limit
6. Revised 2006-07 Appropriations Limit Calculation from Auditors Lance Soll
Lunghard
MOTION:
That the City Council:
Adopt the Resolution approving and adopting the Annual Appropriations Limit for
Fiscal Year 2007-08.
MEETING DATE: 6/25/07
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2007-08.
ATTACHMENTS
Pages
1. Proposed Resolution No. 2007-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
5. Original 2006-07 Appropriations Limit................................................................ 7
6. Revised 2006-07 Appropriations Limit Calculation from Auditors
Lance Soll Lunghard..................................................................................... 8
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RESOLUTION NO. 2007-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2007-2008.
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 111 in 1990, 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 appropriation limit for fiscal year 2006-2007 of $73,289,086
has been corrected. Said corrected appropriations limit is $72,003.916.
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 2007-2008;
WHEREAS, the information necessary for establishing appropriations limit for
fiscal year 2007-2008 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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1. The appropriations limit for fiscal year 2007-2008 is hereby established
as $75,727,832 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 ______________, 2007.
ALAN CORLIN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
CHRISTOPHER ARMENTA, City Clerk CAROL A. SCHWAB, City Attorney
A07-00387
CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2007-2008
Proposed Estimated Revenues for FY 2007-2008 150,609,912 $
Less Estimated Revenues for
Enterprise Funds 37,610,347 $
Internal Service Funds 17,947,652 (55,557,999)
Total Governmental Type Funds 95,051,913
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (40,785,144)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I) 54,266,769 $
Less Voter Approved Indebtedness 0
Less Qualified Capital Outlay (8,124,318)
Less Federal Mandates:
PARS 35,575
FLSA-Fire 127,758 (163,333)
Estimated Revenues subject to Appropriations Limit 45,979,118 $
Appropriations Limit FY 2007-2008 (Exhibit B) 75,727,832
Amount Under Limit 29,748,714 $ CITY OF CULVER CITY
EXHIBIT B
2007-2008 APPROPRIATIONS LIMIT
1. FY 2006-2007 Appropriations Limit 72,003,916 $
2. 2007-2008 Change in Per Capita Personal Income: 4.42%
3. 2007-2008 Change in Population: 0.72%
4. Ratio of Change: (1.0442 x 1.0017)* 1.0517
5. FY 2007-2008 Appropriations Limit 75,727,832 $
* Multiply FY 2006-2007 appropriations limit by the product of the percentage change
in the California per capital personal income figure (1.0442) times the percentage
change in the Los Angeles County population (1.0072) as provided by the Department
of Finance.CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2007-2008
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
REVENUE
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES 3,266,000 $ -
OTHER TAXES:
Sales Tax 18,800,000 -
Public Safety Sales Tax 377,245 -
Transient Occupancy Tax 2,500,000 -
Franchise Tax - 1,224,000 $
Business License Tax 9,144,000 -
Real Property Transfer Tax 2,050,000 -
Utility User Tax 13,656,000 -
Com/Ind Development Tax 1,000,000 -
TOTAL OTHER TAXES 47,527,245 $ 1,224,000 $
LICENSES AND PERMITS - 2,185,000
FINES, FORFEITURES AND PENALTIES - 4,415,000
USE OF MONEY AND PROPERTY - 353,000
CHARGES FOR CURRENT SERVICE - 9,800,436
INTER FUND/DEPARTMENTAL - 5,872,231
INTERGOVERNMENTAL 2,980,600 2,738,304
OTHER REVENUE - 1,456,800
TOTAL GENERAL FUND
BEFORE INTEREST 53,773,845 $ 28,044,771 $
PERCENT 65.7% 34.3%
INTEREST 492,924 257,076
TOTAL GENERAL FUND 54,266,769 $ 28,301,847 $ CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2007-2008
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
GRANTS OPERATING FUND - 1,116,383 $
BUILDING SURCHARGE FUND - 92,500
SECTION 8 FUND - 2,533,896
PROP A LOCAL RETURN - 669,442
PROP C LOCAL RETURN - 542,911
COMMUNITY DEVELOPMENT IMPACT FEES - -
SPECIAL GAS FUND - 756,000
PARK FACILITIES - 40,000
PARKING IMPROVEMENT - 944,000
CAPITAL IMPROVEMENT AND ACQUISITION - 3,792,000
GRANTS CAPITAL - 1,262,800
CDBG BLOCK GRANT FUNDS - 309,365
ASSET SEIZURE FUND - 60,000
ART IN PUBLIC PLACES - 317,000
LANDSCAPE MAINTENANCE DISTRICT - 47,000
GRAND TOTAL 54,266,769 $ 40,785,144 $ REVISED
CITY OF CULVER CITY
2006-2007
APPROPRIATIONS LIMIT CALCULATION
A. 2005-2006 APPROPRIATIONS LIMIT: $ 68,725,700
B. 2006-2007 CHANGE IN PER CAPITA PERSONAL
INCOME: 3.96%
C. 2006-2007 CHANGE IN POPULATION: 0.78%
D. RATIO OF CHANGE (1.0396 x 1.0078) x 1.0477
E. 2006-2007 APPROPRIATIONS LIMIT: $ 72,003,916
($68,725,700 x 1.0477)
Multiplied FY 2005-06 appropriations limit by the product of the percentage change in the California per
capita personal income figure (1.0396) times the percentage change in the County population (1.0078) as
provided by the Department of Finance.