Resolution No. 2016-033RESOLUTION NO. 2016-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ADOPTING AN APPROPRIATION LIMIT FOR THE
2016-2017 FISCAL YEAR, PURSUANT TO GOVERNMENT CODE
SECTION 7910
WHEREAS, Section 7910, of the Government Code requires the
governing body of each local jurisdiction to establish, by resolution,
an appropriation limit for each fiscal year; and
WHEREAS, the appropriation limit for fiscal year 2015-2016,
was $1,032,001,666; and
WHEREAS, the voters of the State of California passed
Proposition 111 on June 5, 1990; and
WHEREAS, under Proposition 111, a City is allowed to use
either, (a) the change in California per capita income from the
preceding year, or (b) the percentage change in the local assessment
roll from the preceding year due to increases in nonresidential
construction; and
WHEREAS, the documentation used in the determination of the
appropriation limit provided for herein has been made available for
inspection by the public fifteen (15) days prior to this meeting; and
WHEREAS, the City Council of the City of Vernon hereby
intends to establish the appropriation limit for fiscal year
2016-2017.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), because such action is a government fiscal activity that
will not result in direct or indirect physical changes in the
environment, and therefore does not constitute a "project" as defined
by CEQA Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
establishes $1,096,662,762 as the amount of the appropriation limit for
fiscal year 2016-2017, in accordance with the provisions of
Proposition 111. The computation is attached hereto as Exhibit A,
which is incorporated herein by this reference.
SECTION 4: The City Council of the City of Vernon has
approved a budget by adopting a Resolution, which did not exceed the
appropriation limit for fiscal year 2016-2017.
SECTION 5: The City Council of the City of Vernon hereby
declares that the budget established by Resolution complies with the
requirements of Government Code, Sections 7900, et sec..
- 2 -
SECTION 6: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions of
the Council of this City.
APPROVED AND ADOPTED this 21st day of June, 2016.
l w
Name: William J. Davis
ATTEST:
aria OAyala
City Clerk / �--�
APPROVED AS TO FORM:
C
wh
&-x-v
Brian Byun, Deputy ity Attorney
Title: Mayor / Mayo r -
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Maria E . Ayala, City Clerk / gepjit Cit a'f the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2016-33, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, June 21, 2016, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 2 v4day of June, 2016, at Vernon, California.
(SEAL)
- 4 -
M ria E.Jlyala
City Clerk / Cl-er1,-= —
EXHIBIT A
City of Vernon
Fiscal Year 2016-2017
Appropriation Limit Calculation
CITY OF VERNON
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
A. CALCULATION OF BASE YEAR 1978-79
STEP 1.
1. Proceeds from Taxes
Property taxes
Othertaxes
Investment earnings
Revenue for Other -Agencies
Less: Railroad Crossing Grant
SUB -TOTAL
Contribution from Enterprise Fund
Miscellaneous
TOTAL PROCEEDS FROM TAXES
2. Non -Proceeds from Taxes
A. User Fees by Function
Public Works
Construction Permits
Streets & Curbs
Engineering Services
SUB -TOTAL
Health
Food Vehicle Permits
Public Health Permits
SUB -TOTAL
Police
Police Services
SUB -TOTAL
TOTAL USER FEES
B. Interfund Service Charges
C. Cost -Reimbursement Items
D. Donations and Grants (non -State) Railroad Crossing Grant
E. Exempt Revenues - (Mandated Cost Reimbursement, Fines,
Proceeds from Bond Issues) Fines, Forfeits, and Penalties
TOTAL NON PROCEEDS FROM TAXES
G RAND TOTAL
STEP 2.
1. Match Cost to User Fees
2. Revenues less than Costs
3. No portion of User Fees considered "Proceeds of Taxes"
STEP 3.
1. All Revenues of the City
2. Non Proceed of Taxes
3. User Fees in excess of Costs
4. Less Debt Service Appropriations
TOTAL
STEP 4.
1. Total all actual Appropriations, as amended for 1978-79
Transfers to Reserves
2. Subtract Non Proceeds of Taxes
BASE YEAR LIMIT (1978-79)
EXHIBIT "A"
A-1
Page 1 of 7
1,061,619
4,890,969
302,913
831,739
9,277
822,462
7,077,963
1,549,490
5,306
8,632,759
121,551
1,604
82,706
205,861
15,516
47,578
63,094
5,944
5,944
274,899
0
0
9,277
67,303
351,479
8,984,238
8,984,238
(351,479)
0
8,586,750
3,988,675
12,575,425
(351,479)
12,223,946
CITY OF VERNON
Page 2 of 7
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
B. 1979-80 APPROPRIATION LIMIT CALCULATION
1978-79 Appropriation Limit
12,223,946
CPI change 10.17%
Vernon population change 1.15%
1.1017 X 1.0115 = 1.11437
X
1.11437
1979-80 Appropriation Limit
13,621,999
C. 1980-81 APPROPRIATION LIMIT CALCULATION
1979-80 Appropriation Limit
13,621,999
CPI change 12.11%
Vernon population change -1.14%
1.1211 X .9886 = 1.1083
X
1.1083
1980-81 Appropriation Limit
15,097,261
D. 1981-82 APPROPRIATION LIMIT CALCULATION
1980-81 Appropriation Limit
15,097,261
Per Capita income change 9.12%
Vernon population change 4.60%
1.0912 X 1.0460 = 1.1414
X
1.1414
1981-82 Appropriation Limit
17,232,014
E. 1982-83 APPROPRIATION LIMIT CALCULATION
1981-82 Appropriation Limit
17,232,014
Per Capital income change 6.79%
Vernon population change -4.35%
1.0679 X .9565 = 1.02144635
X
1.02144635
1982-83 Appropriation Limit
17,601,578
F. 1983-84 APPROPRIATION LIMIT CALCULATION
1982-83 Appropriation Limit
17,601,578
Per Capita income change 2.35%
Vernon population change 2.30%
1.0235 X 1.0230 = 1.0470
X
1.0470
1983-84 Appropriation Limit
18,428,852
G. 1984-85 APPROPRIATION LIMIT CALCULATION
1983-84Appropriation Limit
18,428,852
Per Capita income change 4.74%
Vernon population change -5.37%
1.0475 X .9463 = .9912
X
0.9912
1984-85 Appropriation limit
18,266,678
H. 1985-86 APPROPRIATION LIMIT CALCULATION
1984-85 Appropriation Limit
18,266,678
U.S. Consumer price index change 3.74%
Vernon population change -3.46%
1.0374 X .9654 = 1.0017
X
1.0017
1985-86 Appropriation Limit
18,297,731
EXHIBIT "A"
A-2
CITY OF VERNON
Page 3 of 7
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
I. 1986-87 APPROPRIATION LIMIT CALCULATION
1985-86 Appropriation Limit
18,297,731
U.S. Consumer price index change 2.30%
Vernon population change 6.17%
1.0230 X 1.0617 = 1.0861
X
1.0861
1986-87 Appropriation Limit
19,873,166
J. 1987-88 APPROPRIATION LIMIT CALCULATION
1986-87 Appropriation Limit
19,873,166
U.S. Consumer price index change 3.04%
Los Angeles County population change 1.91%
1.0304 X 1.0191 = 1.0501
X
1.0501
1987-88 Appropriation Limit
20,868,812
K. 1988-89 APPROPRIATION LIMIT CALCULATION
1987-88Appropriation Limit
20,868,812
U.S. Consumer price index change 3.93%
Los Angeles County population change 1.62%
1.0393 X 1.0162 = 1.0562
X
1.0562
1988-89 Appropriation Limit
22,041,639
L. 1989-90APPROPRIATION LIMIT CALCULATION
1988-89 Appropriation Limit
22,041,639
U.S. Consumer price index change 4.98%
Los Angeles County population change 1.14%
1.0498 X 1.0114 = 1.0618
X
1.0618
1989-90Appropriation Limit
23,403,812
M. 1990-91 APPROPRIATION LIMIT CALCULATION
1989-90 Appropriation Limit
23,403,812
Per Capita income change 4.21%
Los Angeles County population change 1.36%
1.0421 X 1.0136 = 1.0563
X
1.0563
1990-91 Appropriation Limit
24,721,447
N. 1991-92 APPROPRIATION LIMIT CALCULATION
1990-91 Appropriation Limit
24,721,447
Per Capita income change 4.14%
Los Angeles County population change 1.73%
1.0414 X 1.0173 = 1.0595
X
1.0595
1991-92 Appropriation Limit
26,192,373
O. 1992-93 APPROPRIATION LIMIT CALCULATION
1991-92 Appropriation Limit
26,192,373
Increase in Nonresidential Construction 32.24%
Los Angeles County population change 1.49%
1.3224 X 1.0149 = 1.3421
X
1.3421
1992-93 Appropriation Limit
35,152,784
EXHIBIT "A"
A-3
CITY OF VERNON
Page 4 of 7
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
P. 1993-94 APPROPRIATION LIMIT CALCULATION
1992-93 Appropriation Limit
35,152,784
Per Capita income change 2.72%
Los Angeles County population change .96%
1.0272 X 1.0096 = 1.0371
X
1.0371
1993-94 Appropriation Limit
36,456,952
Q. 1994-95 APPROPRIATION LIMIT CALCULATION
1993-94 Appropriation Limit
36,456,952
Increase in Nonresidential Construction 4.84%
Los Angeles County population change .75%
1.0484 X 1.0075 = 1.05627
X
1.05627
1994-95 Appropriation Limit
38,508,385
R. 1995-96 APPROPRIATION LIMIT CALCULATION
1994-95 Appropriation Limit
38,508,385
Per Capita income change 4.72%
Los Angeles County population change .33%
1.0472 X 1.0033 = 1.0507
X
1.0507
1995-96 Appropriation Limit
40,460,760
S. 1996-97 APPROPRIATION LIMIT CALCULATION
1995-96 Appropriation Limit
40,460,760
Per Capita income change 4.67%
Los Angeles County population change .48%
1.0467 X 1.0048 = 1.0517
X
1.0517
1996-97 Appropriation Limit
42,552,581
T. 1997-98 APPROPRIATION LIMIT CALCULATION
1996-97 Appropriation Limit
42,S52,581
Per Capita income change 4.67%
Los Angeles County population change 1.24%
1.0467 X 1.0124 = 1.0597
X
1.0597
1997-98 Appropriation Limit
45,092,970
U. 1998-99 APPROPRIATION LIMIT CALCULATION
1997-98Appropriation Limit
45,092,970
Increase in Nonresidential Construction 9.91%
Los Angeles County population change 1.39%
1.0991 X 1.0139 = 1.11
X
1.11
1998-99 Appropriation Limit
50,053,197
V. 1999-2000 APPROPRIATION LIMIT CALCULATION
1998-99 Appropriation Limit
50,053,197
Increase in Nonresidential Construction 15.35%
Los Angeles County population change 1.78%
1.1535 X 1.0178 = 1.17
X
1.17
1999-2000 Appropriation Limit
58,562,240
EXHIBIT "A"
A-4
CITY OF VERNON
Page 5 of 7
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
W.
2000-2001 APPROPRIATION LIMIT CALCULATION
1999-2000 Appropriation Limit
58,562,240
Increase in Nonresidential Construction 10.24%
Los Angeles County population change 1.75%
1.1024 X 1.0175 = 1.1217
X
1.1217
2000-2001 Appropriation Limit
65,689,265
X.
2001-2002 APPROPRIATION LIMIT CALCULATION
2000-2001 Appropriation Limit
65,689,265
Increase in Nonresidential Construction 25.96%
Los Angeles County population change 1.66%
1.2596 X 1.0166 = 1.2805
X
1.2805
2001-2002 Appropriation Limit
84,115,104
Y.
2002-2003 APPROPRIATION LIMIT CALCULATION
2001-2002 Appropriation Limit
84,115,104
Increase in Nonresidential Construction 27.25%
Los Angeles County population change 1.77%
1.2725 X 1.0177 = 1.2950
X
1.2950
2002-2003 Appropriation Limit
108,929,060
Z.
2003-2004 APPROPRIATION LIMIT CALCULATION
2002-2003 Appropriation Limit
108,929,060
Increase in Nonresidential Construction 19.80%
Los Angeles County population change 1.66%
1.1980 X 1.0166 = 1.2179
X
1.2179
2003-2004 Appropriation Limit
132,664,702
AA.
2004-2005 APPROPRIATION LIMIT CALCULATION
2003-2004 Appropriation Limit
132,664,702
Increase in Nonresidential Construction 22.03%
Los Angeles County population change 1.38%
1.2203 X 1.0138 = 1.2371
X
1.2371
2004-2005 Appropriation Limit
164,119,503
BB.
2005-2006 APPROPRIATION LIMIT CALCULATION
2004-2005 Appropriation Limit
164,119,503
Per Capita Income change 5.26%
Los Angeles County population change 1.18%
1.0526 X 1.0118 = 1.0650
X
1.0650
2005-2006 Appropriation Limit
174,787,271
CC.
2006-2007 APPROPRIATION LIMIT CALCULATION
2005-2006 Appropriation Limit
174,787,271
Increase in Nonresidential Construction 29.41%
Los Angeles County population change .78%
1.2941 X 1.0078 = 1.3042
X
1.3042
2006-2007 Appropriation Limit
227,957,559
EXHIBIT "A"
A-5
CITY OF VERNON Page 6 of 7
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
DD. 2007-2008APPROPRIATION LIMIT CALCULATION
2006-2007 Appropriation Limit 227,957,559
Increase in Nonresidential Construction 9.44%
Los Angeles County population change .72%
1.0944 X 1.0072 = 1.1023 X 1.1023
2007-2008Appropriation Limit 251,277,617
EE. 2008-2009 APPROPRIATION LIMIT CALCULATION
2007-2008 Appropriation Limit 251,277,617
Increase in Nonresidential Construction 11.82%
Los Angeles County population change .86%
1.1182 X 1.0086 = 1.1278 X 1.1278
2008-2009 Appropriation Limit 283,390,896
FF. 2009-2010 APPROPRIATION LIMIT CALCULATION
2008-2009 Appropriation Limit 283,390,896
Increase in Nonresidential Construction 6.36%
Los Angeles County population change .90%
1.0636 X 1.0090 = 1.0732 X 1.0732
2009-2010Appropriation Limit 304,135,110
GG. 2010-2011 APPROPRIATION LIMIT CALCULATION
2009-2010Appropriation Limit 304,135,110
Increase in Nonresidential Construction 21.45%
Los Angeles County population change .83%
1.2145 X 1.0083 = 1.22458 X 1.22458
2010-2011 Appropriation Limit 372,437,773
HH. 2011-2012APPROPRIATION LIMIT CALCULATION
2010-2011 Appropriation Limit 372,437,773
Increase in Nonresidential Construction 67.70%
Los Angeles County population change .38%
1.6770 X 1.0038 = 1.683373 X 1.683373
2011-2012 Appropriation Limit 626,951,691
IL 2012-2013 APPROPRIATION LIMIT CALCULATION
2011-2012 Appropriation Limit 626,951,691
Increase in Nonresidential Construction 62.40%
Los Angeles County population change .38%
1.6240 X 1.0038 = 1.630171 X 1.630171
2012-2013 Appropriation Limit 1,022,038,465
JJ. 2013-2014 APPROPRIATION LIMIT CALCULATION
2012-2013 Appropriation Limit 1,022,038,465
Increase in Nonresidential Construction -6.51%
Los Angeles County population change .69%
0.9349 X 1.0069 = 0.941351 X 0.941351
2013-2014Appropriation Limit 962,096,932
EXHIBIT "A"
A-6
CITY OF VERNON
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
KK. 2014-2015 APPROPRIATION LIMIT CALCULATION
2013-2014Appropriation Limit
Per Capita Income change 2.00%
Los Angeles County population change .78%
1.0200 X 1.0078 = 1.027956
2014-2015 Appropriation Limit
LL. 2015-2016 APPROPRIATION LIMIT CALCULATION
2014-2015 Appropriation Limit
Per Capita Income change 3.50%
Los Angeles County population change .82%
1.0350 X 1.0082 = 1.043487
2015-2016 Appropriation Limit
MM. 2016-2017 APPROPRIATION LIMIT CALCULATION
2015-2016 Appropriation Limit
Per Capita Income change 5.37%
Los Angeles County population change .85%
1.0537 X 1.0085 = 1.062656
2016-2017 Appropriation Limit
EXHIBIT "A"
A-7
Page 7 of 7
962,096,932
X 1.027956
988,993,313
988,993,313
X 1.043487
1,032,001,666
1,032,001,666
X 1.062656
1,096,662,762
TRANSMITTAL COMMUNICATION
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 23, 2016
TO: William Fox, Finance Director/City Treasurer
Masami Higa, Assistant Finance Director
Alex Kung, Economic Development Manager
Joaquin Leon, Deputy City Treasurer
FROM: Deborah Juarez, Records Management Assistant
�i1
,j
RE: Resolution No. 2016-33 — A Resolution of the City Council of the City of Vernon Adopting
an Appropriation Limit for the 2016-2017 Fiscal Year, Pursuant to Government Code
Section 7910
Transmitted herewith is a copy of Resolution No. 2016-33 referenced above, which was approved by the
City Council on June 21, 2016.
Thank you.
Attachment
c: Resolution No. 2016-33
� s r � �
RECEIVED
JUN 15 2016 RECEIVED40
CITY CLERK'S OFFICE JUN 15 2015
STAFF REPORT CITY ADMINISTRATION
Finance Department N
DATE: June 21, 2016
TO: Honorable Mayor and City Council
FROM: William Fox, Finance Director ��
RE: Recommendation for Fiscal Year 2016-2017 Appropriation Limit
Recommendation
It is recommended that the City Council:
1. Find that adoption of the Fiscal Year 2016-2017 Appropriation Limit proposed in this
staff report is exempt under the California Environmental Quality Act (CEQA), because
such action is a government fiscal activity that will not result in direct or indirect physical
changes in the environment, and therefore does not constitute a "project" as defined by
CEQA Guidelines section 15378.
2. Establish the City's Appropriation Limit for the Fiscal Year 2016-2017 in the amount of
$1,096,662,762 based on the percentage growth in the State Per Capita Personal Income
and County Population.
Background
California voters approved an initiative on November 6, 1979 that added Article XIIIB to the
State Constitution. The provisions of this article place limits on the amount of revenue that can
be appropriated by all entities of government. This State Appropriation Limit is often referred to
as the Gann Limit, after Paul Gann, the author of the measure placing the limit in the State
constitution. The Appropriation Limit is based on actual appropriations during the 1978-1979
fiscal years, as increased each year using specified population and inflationary growth factors.
The original legislation implementing the provisions of Article XIIIB became effective January
1, 1981. In accordance with that legislation, the governing body of each government jurisdiction
must, by resolution, establish its annual Appropriation Limit for the coming year at a regularly
scheduled meeting or noticed special meeting.
The original Article XIIIB (Proposition 4) and its implementing legislation, Chapter 1205/80,
was modified in June 1990 by Proposition 111 and SB 88 (Chapter 60/90). Significant changes
imposed by Proposition I I I include the following:
• The provision of a choice in methodologies for determining the annual inflation factor
between (1) growth in California per capita income, or (2) growth in non-residential
assessed valuation due to new construction within the City.
• The provision of a choice in methodologies for determining the annual population growth
factor between (1) City population growth, or (2) County population growth.
• Regulations allowing the exclusion of "qualified capital outlay" expenditures from
calculation of the Limit.
• Provision of a process for avoiding tax refunds if a city falls sufficiently below the Limit
in the next fiscal year. The revised language provides two years, beyond the second year,
to refund any remaining excess during which jurisdictions can seek to obtain a successful
override vote.
As a result of Proposition 111, the City is required to choose between two annual inflation
factors and two population factors.
• The choice offered for the annual inflation factor is (1) the growth in California per capita
income or (2) the growth in non-residential assessed valuation due to new construction
within the City.
• The choice offered for the annual population growth factor is (1) the growth in City or (2)
County population.
The City calculated its appropriation limit based on the non-residential assessed valuation due to
new construction as its annual inflation factor and the County's population growth as its annual
population growth factors for the eight (8) years prior to Fiscal Year 2014-2015.
The City calculated its appropriation limit based on the State per capita personal income as its
annual inflation factor and the County's population growth as its annual population growth
factors for Fiscal Year 2014-2015, 2015-2016, and 2016-2017.
When the City prepares its annual budget each year, the appropriations subject to the
Appropriation Limit is typically well below the Appropriation Limit as shown below:
Fiscal Year
Appropriation Limit
Appropriation Subject to
the Limit
Amount Under Limit
2007-2008
$251 million
$50 million
$201 million
2008-2009
$283 million
$77 million
$206 million
2009-2010
$304 million
$48 million
$256 million
2010-2011
$372 million
$41 million
$331 million
2011-2012
$627 million
$62 million
$565 million
2012-2013
$1,022 million
$47 million
$975 million
2013-2014
$962 million
$55 million
$907 million
2014-2015
$989 million
$52 million
$937 million
2015-2016
$1,032 million
$57 million
$975 million
2016-2017
$1,097 million
$55 million
$1,042 million
Over the last ten (10) years, and including 2016-2017, the City's appropriations subject to the
Appropriation Limit have remained well below the Appropriation Limit. Given the size of this
gap, it is unlikely that the City will exceed the Appropriation Limit in the upcoming years
without significant changes to the City's tax structure.
The notice indicating the documentation used in the determination of the appropriation limit
provided herewith was posted on the City's website on June 8, 2016 and is available for public
inspection.
Fiscal Impact
There is no fiscal impact since the City continues to remain below the Appropriation Limit.
Attachment 1: Fiscal Year 2016-2017 Alternative Adjustment Factors
Attachment 1
City of Vernon
Fiscal Year 2016-2017
Alternative Adjustment Factors
ALTERNATIVE ADJUSTMENT FACTORS
Under Proposition 111, there are two options available for each of the major adjustment factors.
The values of these factors for the purpose of calculating the Gann Limit are as follows:
FY 2015 FY 2016 FY 2017
Price Factors:
(A) Percent growth in State per Capita Personal Income: 2.00% 3.50% 5.37%
(Source: California Department of Finance)
Price Factor A 1.020 1.035 1.054
(B) Percent change in Assessed Valuation in new
non-residential construction -56.74 23.73 6.71
(Source: Los Angeles County Assessor's Office)
Price Factor B 0.4326 1.2373 1.0671
Population Factors:
(C) Percentage growth in County Population 0.78 0.82 0.85
(Source: California Department of Finance)
Population Factor C 1.0078 1.0082 1.0085
(D) Percent growth in City Population 0.83 0.82 72.13
(Source: California Department of Finance)
Population Factor D 1.0083 1.0082 1.7213
Annual Adiustment Factors:
Based upon the actual data, the four alternative adjustment factors are as follows:
A x C
1.027956
1.043487
1.062656
A x D
1.028466
1.043487
1.813734
B x C
0.435974
1.247446
1.076170
B x D
0.436191
1.247446
1.836799
f,NT o..
Gf is =
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O A
DEPARTMENT OF EOMUWO G. BRowm JR. GOVERNOR
�,l/� • F I N A N C E STATZ CAPITOL S ROOM 1 145 S SACRAMCHTO CA S 954B 1 4-4998 ■ www.00F.CA.00V
OFFICC OF THE DIRECTOR
May 2016
Dear Fiscal Officer:
Subject: Price Factor and Population Information
Appropriations Limit
The California Revenue and Taxation Code, section 2227, requires the Department of Finance
(Finance) to transmit an estimate of the percentage change in population to local governments.
Each local jurisdiction must use their percentage change in population factor for January 1, 2016,
in conjunction with a change in the cost of living, or price factor, to calculate their appropriations
limit for fiscal year 2016-17. Attachment A provides the change in California's per capita personal
income and an example for utilizing the price factor and population percentage change factor to
calculate the 2016-17 appropriations limit. Attachment B provides the city and unincorporated
county population percentage change. Attachment C provides the population percentage change
for counties and their summed incorporated areas. The population percentage change data
excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. The Revenue and Taxation
Code, section 2228 provides additional information regarding the appropriations limit.
Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the
appropriations limit calculation mandate. The Code and the California Constitution can be
accessed at the following website: http://Ieginfo.legislature.ca.gov/faces/codes.xhtmi.
Special districts required by law to calculate their appropriations limit must present the calculation
as part of their annual audit. Any questions special districts have on this requirement should be
directed to their county, district legal counsel, or the law itself. No state agency reviews the local
appropriations limits.
Population Certification
The population certification program applies only to cities and counties. Revenue and Taxation
Code section 11005.6 mandates Finance to automatically certify any population estimate that
exceeds the current certified population with the State Controller's Office. Finance will certify
the higher estimate to the State Controller by June 1, 2016.
Please Note: Prior year's city population estimates may be revised.
If you have any questions regarding this data, please contact the Demographic Research Unit at
(916) 323-4086.
MICHAEL COHEN
Director
By:
AMY COSTA
Chief Deputy Director
Attachment
May 2016
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living
factor to compute their appropriation limit by a vote of their governing body. The cost
of living factor provided here is per capita personal income. If the percentage
change in per capita personal income is selected, the percentage change to be used
in setting the fiscal year 2016-17 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2016-17 5.37
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2016-17
appropriation limit.
2016-17:
Per Capita Cost of Living Change = 5.37 percent
Population Change = 0.90 percent
Per Capita Cost of Living converted to a ratio:
Population converted to a ratio:
Calculation of factor for FY 2016-17:
5.37 + 100 = 1.0537
100
0.90 + 100 = 1.0090
100
1.0537 x 1.0090 = 1.0632
Fiscal Year 2016-17
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January 1, 2016 and Total Population, January 1, 2016
Total
County Percent Chanae -- Population Minus Exclusions --- Population
city 2015-2016 1-1-15 1-1-16 1.1-2016
Los Angeles
Agoura Hills
0.68
21,068
21,211
21,211
Alhambra
0.91
85,999
86,782
86,782
Arcadia
0.88
56,550
57,050
57,050
Artesia
0.42
16,726
16,797
16,883
Avalon
0.16
3,672
3,678
3,678
Azusa
1.07
48,962
49,485
49,485
Baldwin Park
0.27
74,534
74,738
74,738
Bell
0.42
36,562
36,716
36,716
Bellflower
0.27
76,154
76,363
76,363
Bell Gardens
0.45
42,759
42,952
42,952
Beverly Hills
0.44
34,610
34,763
34,763
Bradbury
1.26
1,109
1,123
1,123
Burbank
0.28
104,815
105,110
105,110
Calabasas
0.41
24,164
24,263
24,263
Carson
0.54
93,489
93,993
93,993
Cerritos
0.42
49,205
49,412
49,412
Claremont
0.54
36,022
36,218
36,218
Commerce
0.52
13,059
13,127
13,127
Compton
0.54
100,685
101,226
101,226
Covina
0.43
49,078
49,291
49,291
Cudahy
0.46
24,490
24,602
24,602
Culver City
0.60
40,207
40,448
40,448
Diamond Bar
1.26
56,371
57,081
57,081
Downey
0.43
113,691
114,181
114,181
Duarte
0.99
21,960
22,177
22,177
El Monte
0.80
112,977
113,885
113,885
ElSegundo
0.30
16,596
16,646
16,646
Gardena
0.73
60,346
60,785
60,785
Glendale
1.03
199,620
201,668
201,668
Glendora
0.58
52,060
52,362
52,362
Hawaiian Gardens
0.59
14,838
14,926
14,926
Hawthorne
0.56
87,517
88,003
88,003
Hermosa Beach
0.15
19,771
19,801
19,801
Hidden Hills
0.65
1,860
1,872
1,872
Huntington Park
0.38
59,493
59,718
59,718
Industry
0.23
440
441
441
Inglewood
0.59
115,966
116,648
116,648
Irwindale
-1.67
1,439
1,415
1,415
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Fiscal Year 2016-17
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January
1, 2016 and Total Population, January 1, 2016
Total
County
Percent Chanae
- Population Minus
Exclusions --
Population
City
2015-2016
1-1-15
1-1-16
1-1-2016
La Canada Flintridge
0.45
20,464
20,556
20,556
La Habra Heights
0.61
5,426
5,459
5,459
Lakewood
0.36
78,187
78,471
78,471
La Mirada
0.38
49,452
49,639
49,639
Lancaster
0.43
151,695
152,349
157,094
La Puente
0.37
40,373
40,521
40,521
La Verne
0.52
33,027
33,200
33,200
Lawndale
0.39
33,365
33,496
33,496
Lomita
0.29
20,232
20,290
20,290
Long Beach
0.66
481,719
484,879
484,958
Los Angeles
1.27
3,977,541
4,028,043
4,030,904
Lynwood
0.20
72,358
72,505
72,505
Malibu
0.50
12,643
12,706
12,706
Manhattan Beach
0.36
35,172
35,297
35,297
Maywood
0.44
28,094
28,219
28,219
Monrovia
0.74
37,254
37,531
37,531
Montebello
0.48
63,620
63,924
63,924
Monterey Park
0.34
61,137
61,346
61,346
Norwalk
0.27
104,278
104,562
105,292
Palmdale
0.60
159,112
160,072
160,072
Palos Verdes Estates
0.42
13,655
13,712
13,712
Paramount
0.46
56,143
56,400
56,400
Pasadena
0.89
139,781
141,023
141,023
Pico Rivera
0.39
64,020
64,272
64,272
Pomona
0.58
154,712
155,604
155,604
Rancho Palos Verdes
0.46
42,825
43,024
43,041
Redondo Beach
0.57
69,101
69,494
69,494
Rolling Hills
0.52
1,933
1,943
1,943
Rolling Hills Estates
0.27
8,006
8,028
8,028
Rosemead
0.44
54,987
55,231
55,231
San Dimas
0.32
34,035
34,144
34,144
San Fernando
0.53
24,404
24,533
24,533
San Gabriel
0.51
40,219
40,424
40,424
San Marino
0.34
13,520
13,566
13,566
Santa Clarita
1.72
215,890
219,611
219,611
Santa Fe Springs
3.29
17,827
18,414
18,459
Santa Monica
0.59
93,093
93,640
93,640
Sierra Madre
0.34
10,976
11,013
11,013
Signal Hill
0.42
11,624
11,673
11,673
South El Monte
1.01
20,605
20,814
20,814
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
Fiscal Year 2016-17
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2015 to January 1, 2016 and Total
Population, January 1, 2016
Total
County
Percent Chanae
-- Population Minus
Exclusions ---
Population
City
2015-2016
1-1-15
1-1-16
1-1-2016
South Gate
1.43
98,176
99,578
99,578
South Pasadena
0.38
25,929
26,028
26,028
Temple City
0.89
36,210
36,534
36,534
Torrance
0.41
146,570
147,175
147,175
Vernon
72.13
122
210
210
Walnut
0.52
29,996
30,152
30,152
West Covina
0.74
107,081
107,873
107,873
West Hollywood
0.38
35,788
35,923
35,923
Westlake Village
0.40
8,351
8,384
8,384
Whittier
0.47
87,924
88,341
88,341
Unincorporated
0.28
1,048,161
1,051,078
1,051,989
County Total
0.85
10,145,677
10,231,861
10,241, 335
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state
and federal correctional institutions and veteran homes.
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JEFPRF Y PRANG
A�sessrrr
Masami Higa
Assistant Finance Director
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Masami Higa:
OFFICE OF THE ASSESSOR
COUNTY OF LOS ANGELES
500 V.E - T TPF.?PLE TM'ET
LOS ANGELES CALIFORNIA 90072 0
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1(858) 80: •2i i i
June 1, 2016
ASSESSOR
�Ancac (es
Valuing Peopia
'nod Property
Your agency, the City of Vernon, in order to effect an adjustment of its Gann Limit,
has requested that the Assessor's Office supply the percentage change in total
assessed valuation for the city over that of the preceding year, due to nonresidential
new construction.
For the City of Vernon, the 2015-2016 net change in nonresidential new
construction, applicable to the 2016-2017 budget, is 6.71%.
If we can be of further service, please call Tia Nguyen at (213) 974-3229.
Sincerely,
1�
Tia Nguyen
Appraiser Specialist
Appraisal Standards
Enclosures
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4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
May 23, 2016
Tia Nguyen
Appraiser Specialist
Statistical Support
Los Angeles County Assessor
500 West Temple Street
Los Angeles, California 90012-2770
Dear Ms. Nguyen,
The City of Vernon, in order to effect an adjustment of its Gann Limit, request that the Assessor's
Office supply the percentage change in total assessed valuation for the city over the preceding year,
due to nonresidential new construction (2015-2016 net change applicable to the 2016-2017 budget).
If you have any questions, please call Masami Higa at (323) 583-8811 Ext. 254.
Sincerely,
Masami Higa
Assistant Finance Director
E Iusivefy Industrial