City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution approving and adopting the
Annual Appropriations Limit for Fiscal Year 2010-2011.
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.
Meeting Date: 6/14/10 Item Number: C-3
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2010-11.
Contact Person/Dept.: Mary V. Noller,
Budget Manager
Phone Number: (310) 253-6012
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (06/09/10);
Notification published in the Culver City News on May 27, 2010 and June 3, 2010.
Department Approval:
Jeff Muir (06/09/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/09/10)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (06/09/10)
City Manager Approval:
P. Lamont Ewell (06/10/10) City of Culver City, California
City Council Agenda Item Report
Based on the City Manager’s Proposed Budget for Fiscal Year 2010-2011, the
Finance Department has calculated the City’s 2010-2011 Appropriations Limit to be
$78,872,647. The appropriations subject to this limit are $40,715,097, which is
$38,157,550 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 2010-2011.
MEETING DATE: 6/14/10
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2010-11
ATTACHMENTS
Pages
1. Proposed Resolution No. 2010-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. 2010-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2010-2011.
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 2010-2011;
WHEREAS, the information necessary for establishing appropriations limit for
fiscal year 2010-2011 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 2010-2011 is hereby established
as $78,872,647 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 ______________, 2010.
CHRISTOPHER ARMENTA, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney
ATTACHMENT 1
2CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2010-2011
Proposed Estimated Revenues for FY 2010-2011 153,983,652 $
Less Estimated Revenues for
Enterprise Funds 38,443,732 $
Internal Service Funds 19,019,417 (57,463,149)
Total Governmental Type Funds 96,520,503
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (43,890,182)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I) 52,630,321 $
Less Voter Approved Indebtedness 0
Less Qualified Capital Outlay (11,749,866)
Less Federal Mandates:
PARS 49,658
FLSA-Fire 115,700 (165,358)
Estimated Revenues subject to Appropriations Limit 40,715,097 $
Appropriations Limit FY 2010-2011 (Exhibit B) 78,872,647
Amount Under Limit 38,157,550 $ |1010|ATTACHMENT 2CITY OF CULVER CITY
EXHIBIT B
2010-2011 APPROPRIATIONS LIMIT
1. FY 2009-2010 Appropriations Limit 80,103,161 $
2. 2010-2011 Change in Per Capita Personal Income: -2.54%
3. 2010-2011 Change in Population: 1.03%
4. Ratio of Change: (0.9746 x 1.0103)* 0.9846
5. FY 2010-2011 Appropriations Limit 78,872,647 $
* Multiply FY 2009-2010 appropriations limit by the product of the percentage change
in the California per capital personal income figure ([-2.54 + 100]/100 = 0.9746) times
the percentage change in the Los Angeles County population ([1.03 + 100]/100 =
1.0103) as provided by the Department of Finance.|1010|ATTACHMENT 3CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2010-2011
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
REVENUE
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES 3,970,000 $ -
OTHER TAXES:
Sales Tax 15,521,340 -
Public Safety Sales Tax 310,000 -
Transient Occupancy Tax 2,850,000 -
Franchise Tax - 1,400,000 $
Business License Tax 9,827,000 -
Real Property Transfer Tax 750,000 -
Utility User Tax 14,775,000 -
Com/Ind Development Tax 400,000 -
TOTAL OTHER TAXES 44,433,340 $ 1,400,000 $
LICENSES AND PERMITS - 2,223,066
FINES, FORFEITURES AND PENALTIES - 4,034,000
USE OF MONEY AND PROPERTY - 329,000
CHARGES FOR CURRENT SERVICE - 11,623,730
INTER FUND/DEPARTMENTAL - 4,803,290
INTERGOVERNMENTAL 3,789,171 240,660
OTHER REVENUE - 3,026,290
TOTAL GENERAL FUND
BEFORE INTEREST 52,192,511 $ 27,680,036 $
PERCENT 65.3% 34.7%
INTEREST 437,810 232,190
TOTAL GENERAL FUND 52,630,321 $ 27,912,226 $
ATTACHMENT 4
5CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2010-2011
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
GRANTS OPERATING FUND - 1,331,535 $
BUILDING SURCHARGE FUND - 115,000
SECTION 8 FUND - 1,849,306
PROP A LOCAL RETURN - 680,000
PROP C LOCAL RETURN - 770,581
COMMUNITY DEVELOPMENT IMPACT FEES - 12,000
SPECIAL GAS FUND - 756,000
PARK FACILITIES - 35,000
PARKING IMPROVEMENT - 1,436,499
CAPITAL IMPROVEMENT AND ACQUISITION - 4,946,500
GRANTS CAPITAL - 3,599,000
CDBG BLOCK GRANT FUNDS - 293,535
ASSET SEIZURE FUND - -
ART IN PUBLIC PLACES - 70,000
LANDSCAPE MAINTENANCE DISTRICT - 73,000
TRAFFIC CONGESTION RELIEF FUND 10,000
GRAND TOTAL 52,630,321 $ 43,890,182 $
ATTACHMENT 4|1013|