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 2012/2013.
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 1978-79 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 Proposed Budget for Fiscal Year 2012/2013, the
Finance Department has calculated the City’s 2012/2013 Appropriations Limit to be
$84,791,997. The City’s 2012/2013 appropriations from the proposed budget that
Meeting Date: 6/11/12 Item Number: C-2
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving and
Adopting the Annual Appropriations Limit for Fiscal Year 2012/2013.
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 (06/08/12);
Notification published in the Culver City News on May 24, 2012 and May 31, 2012.
Department Approval:
Jeff Muir ()
City Attorney Approval:
Carol Schwab (by H. Baker) (06/06/12)
Fiscal Impact Review:
Jeff Muir (by M. Noller) (06/06/12)
City Manager Approval:
John M. Nachbar (06/07/12) City of Culver City, California
Agenda Item Report
are applicable to this limit are $69,085,716, which is $15,706,280 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 2012/2013.
MEETING DATE: 6/ 11/ 12
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 20 12- 13
ATTACHMENTS
Pages
1. Proposed Resolution No. 20 11-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
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RESOLUTION NO. 2012-R______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2012-2013.
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 2012-2013;
WHEREAS, the information necessary for establishing appropriations limit for
fiscal year 2012-2013 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 2012-2013 is hereby established
as $84,791,997 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 ______________, 2012.
Andrew Weissman
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2012-2013
Proposed Estimated Revenues for FY 2012-2013 205,116,066 $
Less Estimated Revenues for
Enterprise Funds 46,938,948 $
Internal Service Funds 18,833,795 (65,772,743)
Total Governmental Type Funds 139,343,323
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (80,004,053)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I) 59,339,270 $
Less Voter Approved Indebtedness 0
Less Qualified Capital Outlay 9,946,896
Less Federal Mandates:
PARS 49,583
FLSA-Fire 150,867 (200,450)
Estimated Revenues subject to Appropriations Limit 69,085,716 $
Appropriations Limit FY 2012-2013 (Exhibit B) 84,791,997
Amount Under Limit 15,706,280 $ CITY OF CULVER CITY
EXHIBIT B
2012-2013 APPROPRIATIONS LIMIT
1. FY 2011-2012 Appropriations Limit 81,159,589 $
2. 2012-2013 Change in Per Capita Personal Income: 3.77%
3. 2012-2013 Change in Population: 0.68%
4. Ratio of Change: (1.0377 x 1.0068)* 1.0448
5. FY 2012-2013 Appropriations Limit 84,791,997 $
* Multiply FY 2011-2012 appropriations limit by the product of the percentage change
in the California per capital personal income figure ([3.77 + 100]/100 = 1.0377) times
the percentage change in the Los Angeles County population ([0.68 + 100]/100 =
1.0068) as provided by the Department of Finance.CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2012-2013
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
REVENUE
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES 3,940,000 $ -
OTHER TAXES:
Sales Tax 17,700,000 -
Public Safety Sales Tax 345,000 -
Transient Occupancy Tax 3,815,000 -
Franchise Tax - 1,350,000 $
Business License Tax 10,050,000 -
Real Property Transfer Tax 1,300,000 -
Utility User Tax 14,925,000 -
Com/Ind Development Tax 250,000 -
TOTAL OTHER TAXES 48,385,000 $ 1,350,000 $
LICENSES AND PERMITS - 2,092,810
FINES, FORFEITURES AND PENALTIES - 3,509,700
USE OF MONEY AND PROPERTY - 2,074,000
CHARGES FOR CURRENT SERVICE - 7,129,671
INTER FUND/DEPARTMENTAL - 4,264,758
INTERGOVERNMENTAL 3,357,337 343,500
OTHER REVENUE - 2,302,230
TOTAL GENERAL FUND
BEFORE INTEREST 55,682,337 $ 23,066,669 $
PERCENT 70.7% 29.3%
INTEREST 171,115 70,885
TOTAL GENERAL FUND 55,853,452 $ 23,137,554 $ CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2012-2013
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
GRANTS OPERATING FUND - 1,040,152 $
BUILDING SURCHARGE FUND - 74,000
SECTION 8 FUND - 1,789,306
PROP A LOCAL RETURN - 531,000
PROP C LOCAL RETURN - 767,044
COMMUNITY DEVELOPMENT IMPACT FEES - 4,000
SPECIAL GAS FUND - 1,069,000
PARK FACILITIES - 29,000
PARKING IMPROVEMENT - 1,252,250
CAPITAL IMPROVEMENT AND ACQUISITION - 1,108,000
GRANTS CAPITAL - 2,459,698
CDBG BLOCK GRANT FUNDS - 218,858
ART IN PUBLIC PLACES - 106,000
LANDSCAPE MAINTENANCE DISTRICT - 100,799
PARKING AUTHORITY - 225,000
HOUSING AUTHORITY - 4,348,848
SUCCESSOR AGENCY - 41,378,544
MEASURE R FUNDS - 365,000
GRAND TOTAL 55,853,452 $ 80,004,053 $