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 2009-10.
BACKGROUND/DISCUSSION:
Proposition 4, approved by the voters on November 6, 1979, added Article XIIIB 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 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
1986-87. 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.
Based on the proposed 2009-10 budget, the Finance Department has calculated the
City’s 2009-10 Appropriations Limit to be $80,103,161. The City’s 2009-10
Meeting Date: 6/22/09 Item Number: A-4
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2009-10.
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: [X] Attachments: [X]
Public Notification:
Notification published in the Culver City News on June 4, 2009 and June 11, 2009;
Master E-Mail Notification List (06/17/09)
Department Approval:
Jeff Muir (06/15/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/17/09)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (06/17/09)
City Manager Approval:
Mark Scott (06/17/09) City of Culver City, California
City Council Agenda Item Report
appropriations from the proposed budget that are applicable to this limit are
$44,448,816, which is $35,654,345 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 2009-10.
MEETING DATE: 6/22/09
AGENDA ITEM: Adoption of a Resolution Approving and Adopting the Annual
Appropriations Limit for Fiscal Year 2009-10.
ATTACHMENTS
Pages
1. Proposed Resolution No. 2009-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. 2009-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2009-2010.
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 2009-2010;
WHEREAS, the information necessary for establishing appropriations limit for
fiscal year 2009-2010 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 2009-2010 is hereby established
as $80,103,161 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 , 2009.
ANDREW WEISSMAN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
CAROL A. SCHWAB, City Attorney
A09-00245
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MARTIN R. COLE, City Clerk
2CITY OF CULVER CITY
EXHIBIT A
ANALYSIS OF EFFECT OF APPROPRIATIONS LIMIT ON ESTIMATED REVENUE
FISCAL YEAR 2009-2010
Proposed Estimated Revenues for FY 2009-2010 $ 159,938,397
Less Estimated Revenues for
Enterprise Funds $ 49,782,841
Internal Service Funds 18,812,948 (68,595,789)
Total Governmental Type Funds 91,342,608
Less Estimated Revenues not derived from
the Proceeds of Taxes (see Schedule I) (37,809,926)
Total Estimated Revenues derived from
the Proceeds of Taxes (see Schedule I) $ 53,532,682
Less Voter Approved Indebtedness 0
Less Qualified Capital Outlay (8,919,788)
Less Federal Mandates:
PARS 48,378
FLSA-Fire 115,700 (164,078)
Estimated Revenues subject to Appropriations Limit $ 44,448,816
Appropriations Limit FY 2009-2010 (Exhibit B) 80,103,161
Amount Under Limit $ 35,654,345
3CITY OF CULVER CITY
EXHIBIT B
2009-2010 APPROPRIATIONS LIMIT
1. FY 2008-2009 Appropriations Limit $ 79,229,281
2. 2009-2010 Change in Per Capita Personal Income:
3. 2009-2010 Change in Population:
4. Ratio of Change: (1.0062 x 1.0048)* 1.0110
5. FY 2009-2010 Appropriations Limit
$ 80,103,161
0.62%
0.48%
* Multiply FY 2008-2009 appropriations limit by the product of the percentage change
in the California per capital personal income figure (1.0062) times the percentage
change in the Los Angeles County population (1.0048) as provided by the Department
of Finance.
4CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2009-2010
REVENUE
PROCEEDS
OF TAXES
NON-PROCEEDS
OF TAXES
GOVERNMENTAL TYPE FUNDS
GENERAL FUND
PROPERTY TAXES 3,685,000
OTHER TAXES:
Sales Tax 16,165,140
Public Safety Sales Tax 360,000
Transient Occupancy Tax 2,746,450
Franchise Tax $ 1,330,000
Business License Tax 9,541,000
Real Property Transfer Tax 1,500,000
Utility User Tax 14,637,000
Com/Ind Development Tax 985,000
TOTAL OTHER TAXES $ 45,934,590 $ 1,330,000
LICENSES AND PERMITS 1,816,790
FINES, FORFEITURES AND PENALTIES 4,057,000
USE OF MONEY AND PROPERTY 329,000
CHARGES FOR CURRENT SERVICE 10,204,115
INTER FUND/DEPARTMENTAL 6,689,009
INTERGOVERNMENTAL 3,453,380 474,169
OTHER REVENUE 3,995,300
TOTAL GENERAL FUND
BEFORE INTEREST $ 53,072,970 $ 28,895,383
PERCENT 64.7% 35.3%
INTEREST 459,712 250,288
TOTAL GENERAL FUND $ 53,532,682 $ 29,145,671
5CITY OF CULVER CITY
SCHEDULE I
ANALYSIS OF ESTIMATED REVENUES
FISCAL YEAR 2009-2010
PROCEEDS
OF TAXES
NON-PROCEEDS
OF TAXES
GRANTS OPERATING FUND $ 1,417,966
BUILDING SURCHARGE FUND 105,000
SECTION 8 FUND - 2,199,014
PROP A LOCAL RETURN - 699,000
PROP C LOCAL RETURN - 766,788
COMMUNITY DEVELOPMENT IMPACT FEES - 5,000
SPECIAL GAS FUND - 791,000
PARK FACILITIES - 35,000
PARKING IMPROVEMENT - 1,450,999
CAPITAL IMPROVEMENT AND ACQUISITION - 700,000
GRANTS CAPITAL 1,000
CDBG BLOCK GRANT FUNDS 250,244
ASSET SEIZURE FUND
ART IN PUBLIC PLACES 70,000
LANDSCAPE MAINTENANCE DISTRICT 73,864
TRAFFIC CONGESTION RELIEF FUND 99,380
GRAND TOTAL $ 53,532,682 $ 37,809,926|1013|