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Resolution No. 2019-019RESOLUTION NO. 2019-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING AN APPROPRIATION LIMIT FOR THE 2019-2020 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 2018-2019, was $985,664,603; 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 2019-2020. 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 Bill, 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 $985,664,603 as the amount of the appropriation limit for fiscal year 2019-2020, 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 2019-2020. 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 Interim City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the Interim City Clerk of the City of Vernon shall cause this resolution and the Interim City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 2nd day of July, 2019. ATTEST: Deborah Harrington, Interim City Clerk APPROVED AS TO FORM: �T& B ' n Byun , Senior Deputy City Attorney - 3 - Name: Melissa' A. Ybarra Title: Mayor / Mayer- Pre-Tef- STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Deborah Harrington, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2019-19, 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, July 2, 2019, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this ?I',- day of July, 2019, at Vernon, California. (SEAL) - 4 - Deborah Harrington, Interim City Clerk EXHIBIT A Exhibit A City of Vernon Fiscal Year 2019-2020 Appropriation Limit Calculation CITY OF VERNON APPROPRIATK)N I IMIT UNDER PRUPOSl I1Irs 4 AND SECTION 7901 OF THE GOVERNMFNT COOF A. CALCJJLATION OF BASE YEAR 1978 '9 STEP 1, 1. Proceedl,frum rax. Property taxes Othertaxes Investment earnings Revenue for Other -Agencies less: Railroad Crossing Grant SUB -TOTAL Contribution (rum f ntwprise Fund Miscellaneous TOTAL PROCEEDS FROM TAXES 2. N20-eroceeds from I axes A. User Eces by Functi�s Emblic Works Construction Permit. Streets & Curbs Engineerift Services StrB-TOTAL F"21 foal Vehicle ee(mits Public Health Permits SUS -TOTAL Polite Police ServKe5 SUB-10"TAI TOTAL USER FEES S. Interfund Service Charges C Cost -Reimbursement Items D. Donation and Grants (non -State) Railroad Crossing Grant E Exempt Revenues (Mandated "st Reimbursement, Fines, Proceeds from Bond Issues) *Ines, Forfeits, and Penalties TOTAL NON PROCEEDS FROM TAXES GRAND TOTAL STEP, 1. Match Cost to User Fees 2. Revenues less than Costs 3. No portion of User Fees cunsidere i "Proceeds of Taxes' STEP S. 1. AR Revenues of the City 2. Non Proceed of faxes 3. User Fees in excess of Costs 4. Less Debt Service Appropriations TOTAL STEP 4- l. Total all actual Appropriations, as amended for 1978 79 'ransfersto Reserves 2. Subtfact Non Proceeds of Taxes BASF YEAR LIMIT (1978-79) EXHIBIT "A' A-1 Page 1 of 7 -,061,619 4,890 969 302,913 831,739 9,1"t! 822,462 7,077,963 1,S49,490 5,306 8,532.,759 121,551 1,604 $2,106 205,861 15'i16 47,578 5,944 63,094 5,944 274,It99 0 0 9,277 67,303 351,479 8,984,238 ..mow. 8,984, 238 (351,479) 0 0 8,632,759 8 586, 750 3,988,675 12,5 75,425 i3.1,4 '9) 12,223,946 .sue CITY OF VERNON Page 2 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF 1HE GOVF.RNMEN CODE 8. 1979 80 APPROPRIATION LIMIT CALCULATION 1978 `9 Appropriation Limit 12,223,946 CP: change 10.171A Vernon population change 1.15 1.1L1' X 1.0115 a 1.11437 X 1.11437 1979.80Appropoation 'mit 13,621,999 C. 1980.81 APPROPRIATION LIMIT CALCULATION 1979.80 Appropriation Limit 13,621,999 CPI change 12.1I*A Vernon p )pulation change -I.W, 1.1211 X .9886=1.1083 X 1.1083 1980-81 Appropriation Limit 15,097,261 0. 1981.82 APPROPRIATIJN LIMIT CALCULATION 1980-81 Appropriation Limit 15,097,261 Per Capita Incom- change 9.17% Vernon population change 4.60% 1.0912 X 1.0460 - 1.2414 X 1.1414 1981-82 Appropriation Limit 17,232,014 E. 1982-83 APPROPRIATION LIMIT CALCULATION 1981-82 Appropriation limit 17,232,014 Per Capital income change 6.79% Vernon population change-4.3$., 1.0679 X .9565. 1.02144635 X 1.02144635 198:1.83 Appropriation Limit 17,601,578 F, 1983.84APPROPRIA,ION LIMIT CALCULATION 1982-83 Appropriation Limit 17,601,578 Per Capita income change 2.3`"- Vernon populaton change 2.30% 1.0235 X 1.0?30-1.0470 X 1.0470 1983.94 Appropriation Limit 18,428,65a G. 1984-85 APPROPRIATION LIMIT CALCULATION 1983.34 Appropriation Limit 18,428,852 Per Capita income change 4., c Vernon population change -5 37% 1.047S X .9463 .9912 X 0.9912 1984-85 Appropriation . .t 28,266,678 M. 1935-96 APPROPRIATION LIMIT CALCULAI ION 1984.85 Appropriation omit 18,266,678 U.S. Consumer price index change 3.7k Vernon population change 3.46 L 1.0374 X .9654.1.0017 x 1.0017 1985-86 Appropriation Limit 18_ )97, r31 EXHIBIT 'A, A•2 CITY Of VERNON Page 3 of 7 APPROPRIATION LINT 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°i, V0230 X 1.0617 1.0961 X 1.0861 1986.87.4ppropriation Limit 19,873,266 J. 1987.88 APPROPRIATION LIMIT CALCULATION 1986-87 Appropriation limit 19,873,166 U.S. Consumer price index change 3.04s- Los Angeles County population change 1.91% 1.0304 X 1.0191-1.0501 X 1.0501 1987-88 Appropriation Limit 20�2 K. 1989-89 APPROPRIATION LIMIT CALCULATION 1987-88 Appropriation Limit 20AM312 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 1989.90 APPROPRIATION LIMIL CALCULATION 1989-89 Appropriation Limit 22,042,639 U.S. Consumer price Index change 4.9890 Los Angeles County population change 1A41% 1.0498 X 1.0114 - 1,0618 X 1.0618 1989-90 Appropriation Umit 23,403,812 M. 1990.91 APPROPRIATION LIMIT CALCULATION 1984-90 Appropriation Limit 23,403,812 Pe Capita Income change 4.21% Los Angeles County population change 1.361R 1.0421 X 1.0136 =1.0S63 X 1.0563 '991,-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. )3% 1.0414 X 1.0173 = 1.0595 X 1.0595 1991 92 Appropriation Limit 26,192,373 0. 1:,;,J-93 APPROPRIA7fON LIMIT CALCULATION 1991-92 Appropriation Limit 26,192,373 Increase In Nonresidential Construction 32.24a. Los Angeles County population change IAA.,,-. 1.3224 X 1.0149 - L3421 X 1.3421 1992.93 Appropriation Limit 35,152,794 EXHIBIT W A-3 CITY OF VERNON Page 4 of 7 APPROPRIATION LIMIT UNDER PROPOSIT1,0M 4 ANO SECTION 1901 Of 11HE GOVERNMI N+ WOE P i.993 94 APPROPRIATION I IMI'r CALCULATION 1997.93 Appropriation Limit 35,157,794 Per Capita imome change 2 72`K Los Angeles County population change .%Vo 1.0272 X 1.0096. 1.0371 X 1.0371 1993.94 Appropriation Limit 36,456,952 Q. 1994.95 APPROPRIATION LIMIT CALCULAI ION 1993-94 Appropriation Limit 36 456,,W Increase in Nonresidential Construction 4.64% Los Angeles County populatlon change 7555 1,0484 X 1.0075 - 1.05617 X 1.05627 1994 95Appropriation IWIT 38,508,385 R. 1995.96 APPROPRIATION LMMI CALCULATION 1994-95 Appropriation limit 38,509,395 Per Capita income change 4 i 2)4 Ins Angeles County population change .33% 1.0472 X 1,0033 = 1.0507 X LOBO/ 1995 96 A.pprupriation Limit 40,460,760 5 1996-3APPROPR01I1ON LIMIT C 4CUtATION 1995-1'r. Appropriation Limit 40,460,760 Pe- capita income change 4-67 L . Angeles county population change .48I, 1.0467 X 1.0048 1,0517 X 1.0517 1996-97 Appropriation Limit 42,557,581 T. 2997-U APPROPRIATION LIMIT CALCULATION 1996.97 Appropriation I imlt 42,552,581 Per Capita income change 4.67% Los Angeles County population change 1.24"<0 1 Lift / X 1.0124 s 1.059 t X 1.0597 1991-`78 Appropriation LIMIt 45,092,970 L' 1' 98-99APPRCPRIAIION LIMIT CALCULATION 1997-98Appropriation limit 45,092,970 icrease in Nonresidential Construction 9.91% Los Angeles County population change 1.39% 1.0991 X 1.0139 • 1.11 X 1.11 19W-99 Approprtal,an tiny! 50,053,191 V. 19y j -? 00U APPROPRIATION L I MIT CALCULATION 1998.99 Appropriation I unit 50,053,197 increase in Nonresidential Construction 15.35% Los Angeles County population change 1 16% 1.1S3S X 1.0179 - 1.11 X 1.17 1999.2000'lpproprialion Limit 53,567,240 EXHIBIT'A' A-4 CITY Of VERNON Page 5 of APPROPRIATION LIMIT UNDER PROPOSITION 4AND SECTION 7901 OF THE GOVERNMENT CODE W. 2000-2001 APPROPPu1TI0N LIMIT CALCULA' ION 2999.2000 Appropriation Limit 58,552,240 Increase in Nonresidential Construction 10.24a Los Angeles County population change 1.75% 1.1024X1.0115-1.1217 X 1.121! 2000-2001 Appropriation Limit 65,689,z65 X. 2001.20UI APPROPRIATION LIMI I CALCULATION 2000.2001 Appropriation Limit 65,689.265 increase in Nonresidential Construction 25.96% Los Angeles County population change IA 1.2596 X 1.0166 = 1.2805 X 1.2805 2001.2002 Appropriation Limit 84,115,104 ram. 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 ' 1% 1.2725 X 1.0177. 1.2950 X 1.2950 2002-2003 4ppropriation limit 109,929,060 Z 2003.2004 APPROPRIATION UPdIT CALCULA I ION 2002 2003 Appropriation Limit 100.929ID60 Increase in Nonresidential Construction 19.80% Los Angeles County, populatrn cho rige 1.66% 1.198O X 1.0166 = 1.I' 9 X 1.2179 2003-2004 Appropriation Limit 132.664,702 AA. 2U04.2005 APPROPR1A110N LIMIT CALCULATION 2003-2004 Appropriation U"t 132,664;102 increase in Nonresidential Construction 22.03% Los Angeles County population cha, Qe 1.3g o 1.22U3 X 1.0138 - 1.7371 X 1.2371 2004.2005 Appropriation , rnit 164,119,503 88. 2005.2006 APPROPRLAT10N LIMIT CALCULA r IC N 2004.200S Appropriation Limit 164,119,503 Per Capita Income change 5.2635 Los Ai%eles County population change 1.18% 1.0526 X 1.0118 = 1,0650 X 1.0650 2005-2006 Appropriation '_imit 174, 787,271 CC. 2011E 200! APPROPRIATION LIMIT LALWAI VJN 2005 2006AppropriationLimit 114,78-1,271 Increase in Nonresidential Construction 29.41% Los Angeles Countypopul4bon chiinge IVA 2.2%1 X 1.U078 - 1.3042 X 1.3042 2006.2001 Appropriation Limit 227,957,559 EXHIBIT 'A A-5 Ct 1 Y Of VERNON wage 8 or 7 APPROPRIATION UMiI UNDER PROPOSITION 4 AND 5FC'1CIN 7901 OF THE GOVERNMENT LODE Oft. 2007-2G 1 APO ROPRIATrON LIMIT CALCULATION 2006-2007 Appropriation Limit 227,J51,559 increase in Nonresidential Construction 9.44% Los Angeles County population change 721e 1.0944 X 1.0072 1.1023 X 1.1023 2007.2008 Appropriation Lirrit 251,21),617 Ef. 2008 1009 APPROPRIATION LIMI I LALCUtA IION 2001 2008 Appropriation link :51,277,61 i rrcrease in Nonresidential Construction 11,82% Lus Angeles County population change .815% 1.1182 X 1.0086. 1.1278 X 1,1278 2008-2009 Appropriation I Imit 283, 390,896 FF. 2009-2010 APPROPRIATION LIMIT CALCULATION 2008.2009 Appropriation Umit 283, 390,896 Increase in Nonresidential Construction 6.36s;, Los Angeles County population change .9C' 1.0636 X 1.0050. 10132 X 1.0132 2009-2010 Appropriation Limit 304,135,120 GG. 2010.2011 APPRGPRIATION OMll CALCULATION 2009 2010 Appropriation Limit 304,135,210 increase in Nonresidenbal Construction 21.453o ,.cis Angeles County population change .83% 1.2145 X 1.0083. 1.22458 X 1.22459 2010.2011 Appropriation limit .moo 372,437,773 HH. 2011-2012 APPROPRIATION LIMIT CALCULATION 2010.2011 Appropriation Limit 372.437,773 Increase in Nonresidential Construction 67 ?0% tos Angeles County population change .38% 1.6770 X 1.0038 = 1.693373 X 1.693373 2011.2012 Appropriation Limit 626,9$1,691 ter_ II. 2012.2013 APPROPRIATION LIMN CALCULATION 2011.2012 Appropriation Limit 626,951,691 Increase in Nonresidential Construction 52.40% Los Angeles County population change .38% 1.62411 X 1.0038 - 1.630111 X 1,630171 2012.2013 Appropriation Limn 1,022,038,465 2013-2014 A- PROPRIAi ION LIMI I CALCULATION 2012-2013 Appropriation Limit 1,022 03R 465 lncrea�r in Nunresidential Construction -6.51 I os Angeles County population change .69% 0 9349 X 1.0069 = 0.941352 X 0.941351 2013-2014 Appropriation LknR 962 096,912 EXHtWT W A-6 CITY OF VERNON Page 7 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE KK. 2014-2015 APPROPRIATION LIMIT CALCULATION 1013-2014 Appropriation limit 962,096,932 Per Capita Income ch,,3nge 2.00 , .os Angeles County population change .781. 1.0200 X 2.0079. 1.027956 X 1.027956 2014.2015 Appropriation rink 988,993,313 LL, 2015-2016 APPROPRIATION LIMIT CALCULATION 2014-2015 Appropuadon Limit 988,993,313 Per Capita Income change 3.W, Los Angeles County population change .82`n 1.0350 X 1.0082 a 1.043487 X 1.043487 2015-2036 Appropriation Limit 1,037,001,666 MM. 2016.2017 APPROPRIATION LIMIT CALCUlAT10N 2015-2016 Appropriation Limit 1,032,( 11,666 Per Capita income change 5.37,a Los Angeles County population change .85� 1.0537 X 1.0085 = 1.062656 X 1.062656 2016-2017 Appropriation Limit 1,096,662,762 NN. 2017-2018 APPROPRIATION LIMIT CALCULA ION 7016=012 Appropriat�,n limit 1,096,66: 762 Increase in Nonresidential Construction •13.27�- Los Angeles County pop., at:;,n ,.hange .57:e 0,8673 X 11 )S7 ■ 0.972244 x C,.872244 201 t-2018 Appropriation Limit 956,557,514 00. 2018.2019 APPROPRIATION LIMIT CALCULATION 2017.2018 Appropriation Limit 956,557,514 Increase in Nonresidential Construction 7.52% Los Angeles County popAadon change .51 ,> 1.0252 X 1.0051- 1.030429 X 1.030429 2018.2019 Appropriation Limit 985,664,603 PP. 2019-2020 APPROPRIAI?ON LIMIT CALCULATION 2018.2019 Appropriation Limit 985,664,603 Increase in Nonresidential Construction 23.25% -os Angeles C ity population change -0.01+ 1.2352 X 0.1999 - 1.23SO76 X 1.23SO76 2019-2020 Appropriation Limit 1,217,370,695 EXHIBIT 'A A-7 STAFF REPORT AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19. SD City Council Agenda Item Report Agenda Item No. COV-281-2019 Submitted by: William Fox Submitting Department: Finance/ Treasury Meeting Date: July 2, 2019 SUBJECT Recommendation for Fiscal Year 2019-2020 Gann Governmental Appropriation Limit Recommendation: A. Find that adoption of the Fiscal Year 2019-2020 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; and B. Conduct a Public Hearing; and C. Adopt the attached resolution establishing the City's Appropriation Limit for the Fiscal Year 2019-2020 in the amount of$1,217,370,695 based on the percentage change in the Nonresidential Construction 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 i I i and SB 88 (Chapter 60/90). Significant changes imposed by Proposition 111 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 choice in methodologies for determining the annual population growth factor between (1) City population growth, or (2) County population growth. 0 Regulations allowing the exclusion of"qualified capital outlay" expenditures from calculation of the Limit. AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD • 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. 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 Fiscal Year 2017-2018, 2018-2019, and 2019-2020. 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 Appropriation Appropriation Amount Year Limit Subject to Limit Under Limit 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 2017-2018 $957 million $56 million $901 million 2018-2019 $986 million $60 million $926 million 2019-2020 $1,217 million $60 million $1,157 million Over the last ten (10) years, and including 2019-2020, 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 Link 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 or around June 13, 2019 and is available for public inspection. AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Fiscal Impact: There is no fiscal impact since the City continues to remain below the Appropriation Limit. ATTACHMENTS • 1. Public Hearing Notice - FY 2019/2020 Gann Appropriation Limit • 2. Fiscal Year 2019-2020 Alternative Adjustment Factors • 3. Resolution - Appropriation Unit 2019-2020 AG. ITEN NO. 2- ACTION ADOPT City of Vernon ION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 4305 SQYP9/l8•A%cnue Vernon. CA 90058 (323)583-8811 NOTICE OF PUBLIC HEARINGS REGARDING THE PROPOSED CITY WIDE BUDGET AND THE GANN GOVERNMENTAL APPROPRIATION LIMIT The City of Vernon will conduct two (2) Public Hearings, which you may attend. PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue Vernon. CA 90058 DATE & TIME: Tuesday, July 2, 2019, at 9:00 a.m. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: Consider Adoption of the Fiscal Year 2019/2020 1) Proposed City Wide Budget 2) Gann Governmental Appropriation Limit DOCUMENTS FOR REVIEW: All relevant documents will be made available for inspection by the public at the Vernon City I -tall, City Clerk Department, 4305 Santa Fe Avenue, Vernon, California 90058, Monday through Thursday, 7:00 a.m. to 5:30 p.m. and will be made available on the City's website at: 1ittf7. �N��.�.it,\-�,lr��rr,nn 01 ijgov crrnlicut.�p1J ,u1etln 5'c irk-_4-,sui7- it Please send your comments or questions to: William Fox, Finance Director City of Vernon 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811 Ext. 849 Entail: wfox,cuci.vernon.ca.us PROPOSED CEQA FINDING: Staff plans to recommend that the Vernon City Council determine that the adoption of the Fiscal Year 2019/2020 Proposed City Wide Budget and the adoption of the FY 2019/2020 Gann Governmental Appropriation Limit will not have a significant elect on the environment and that each are exempt front the California Environmental Quality Act (CEQA). Adoption of the budget and/or the appropriation limit is aligned with the creation of government finlding mechanism or other government fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is therefore not a `'project" as defined under Section 15378(b)(4). Further, even if adoption of either were considered a *-project." it would be cxennpt from CEQA review in accordance with Section 15061(b)(3), the general rule that CEQA only applies to prcliects that may have a significant effect on the environment. Ifyou challenge the adoption/approval of the Fiscal Year 2019/2020 Proposed City Wide Budget and/or the Gann Governmental Appropriation Limit or any provision thereof in cows, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Americans with Disabilities Act (ADA): In compliance with ADA. ifyou need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-881 1 ext. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: 64 Maria E. Aye a, City Clerk AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address : 915 E FIRST ST. LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ iwvw.Leg alAdstore.corn MARIA AYALA CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description PUBLIC NOTICE - Budget & GANN Limit To the right is a copy of the notice you sent to us for publication in the HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 06/13/2019 An invoice will be sent after the last date of publication. If you prepaid this order in full. you will not receive an invoice. IIIPI'I I IIII VG IIIII IIII II II I I911111I11i1 IIII IVII 181111III PRE# 3263497 NOTICE OF PUBLIC HEARINGS REGARDING THE PROPOSED CITY WIDE BUDGET AND THE GANN GOVERNMENTAL APPROPRIATION LIMIT The City of Vernon will conduct two (2) Public Hearings, which you may attend. PLACE. Vernon City Hall Cityy Council Chamber 4305 Sonto Fe Avenue Vernon, CA 90058 DATE 8 TIME Tuesday, July 2, 2019, at 9,00 am (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT Consider Adoption of the Fiscal Year 201912020 11 Proposed City wide Budget 21 Gann Governmental Appropralion Limit DOCUMENTS FOR REVIEW All relevant documents will be made available for inspection by the public at the Vernon City Hall, City Clerk Department, 4305 Santa Fe Avenue. Vernon, California 900.58, Monday through Thursday. 700 a.m. to 530 p.m. and will be made availabre on the Cily's websne al. hffQ 11%~ citvofvernon orolboyernmintloudic- meetinos Please send your comments or questions to Wiliam Fox. Finance Director Cityy� of Vernon 4305 Santa Fe Avenue, Vernon. CA W058 (323) 583.8811 Exit 849 Emil wfoxoa:Vernon caul PROPOSED CEOA FINDING. Staff plans to recommend that the VernonCity Council determine that the adoption of the Fiscal Year 201WO20 Proposed City Wide Budget and the adoption of the FY 2019f2O2O Gann Governmental Appropriation Lir nit will not have a significant effect on the environment and that each are exempt from the California Environmental Quality Act (CEOA). Adoption of the budget andlor the appropriation limit is aligned wrtn the creation of a government funding mechanism or other government fiscal activity ,,,at ,,,as not involve any conunitrnent to any specific protect which may result in a potentially significant physical impact on the environment and is therefore not a 'pdject" as defined under Section 15378(b)(4) Further, even if adoption of :liner were considered a -project." it would be exempt from CEQA review in accordance with Section 15061(b)(3). the general rula that CEOA only applies to projects that may have a significant effect on the environment If you challenge the adopnorJapproval or the Fiscal Year 20190020 Proposed City Wide Budget and/or the Gann Govornmen" Appropriation Limit or any provision thereof in court, you may be limited l0 raisingg Ofty those issues you or someone else rased ai the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Americans win Disabilities Act (ADA) In compliance with ADA it you nett special assistance l0 anicipate in the meeting please contact the Office of the City Clerk at (3231 583• 881 t ext 546 AG. ITEN NO. 2- ACTION' ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD The hearing may be continued or ad ow ned or canoed and rescheduled to a stated time and Place without further notice of a public hearing Dated 061111'2019 IS/ Maria E. Apia Cny Clerk 6t13/19 PRE-32634970 HUNTINGTON PARK BULLETIN AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Attachment 2 City of Vernon Fiscal Year 2019-2020 Alternative Adjustment Factors AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD 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 2018 FY 2019 FY 2020 Price Factors: (A) Percent growth in State per Capita Personal income: 3.69% 3.67% 3.85% (Source: California Department of Finance) Price Factor A 1.037 1.037 1.039 (B) Percent change in Assessed Valuation in new non-residential construction -13.27 2.52 23.52 (Source: Los Angeles County Assessor's Office) Price Factor B 0.8673 1.0252 1.2352 Population Factors: (C) Percentage growth in County Population 0.57 0.51 -0.01 (Source: California Department of Finance) Population Factor C 1.0057 1.0051 0.9999 (D) Percent growth in City Population 0.00 0.00 0.00 (Source: California Department of Finance) Population Factor D 1.0000 1.0000 1.0000 Annual Adjustment Factors: Based upon the actual data, the four alternative adjustment factors are as follows: A x C 1.042810 1.041987 1.039396 A x D 1.036900 1.036700 1.038500 B x C 0.872244 1.030429 1.235076 B x D 0.867300 1.025200 1.235200 AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD 6 NT as W III n O /q x DEPARTMENT OF C P[3'—C.T NEWSQM 0 GOVERNOre F I N A N C E glIF4NN� 91 5 L STRf Ie.T � SACAYAMGNTC CA 0 BSB 74.7706 6 \VW W.CCG.CA.C3 CIV May 2019 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit California Revenue and Taxation Code section 2227 requires the Department of 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, 2019, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2019-20. 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 2019-20 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. California 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 section and the California Constitution can be accessed at the following website: httr?://Ie_qinfo.legislature.ca.gov/faces/code.s.xhtmt. 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. California 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, 2019. Please Note: The 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. KEELY BOSLER Director By: Vivek Viswanathan Chief Deputy Director Attachment May 2019 AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Attachment A A. Price Factor: Article XI I I 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 2019-20 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2019-20 3.85 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2019-20 appropriation limit. 2019-20: Per Capita Cost of Living Change = 3.85 percent Population Change = 0.47 percent Per Capita Cost of Living converted to a ratio Population converted to a ratio: 3.85 + 100 = 1.0385 100 0.47 + 100 = 1,0047 100 Calculation of factor for FY 2019-20: 1.0385 x 1.0047 = 1.0434 AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Fiscal Year 2019-20 Attachment B Annual Percent Change in Population Minus Exclusions* January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019 Total County Percent Change -- Population Minus Exclusions - Poo Matson City 2018-2019 1-1-18 1-1-19 1-1-2019 Los Angeles Agoura Hills -0.15 20,874 20,842 20,842 Alhambra -0.16 87,070 86,931 86,931 Arcadia 0.64 58,516 58,891 58,891 Artesia 0.05 16,824 16,833 16,919 Avalon -0.29 3.&% 3,845 3,845 Azusa 2.14 50,237 51,313 51,313 Baldwin Park 0.16 77,161 77,286 77,286 Bell 0,69 36,307 36,556 36,566 Bellflower 0,04 78,279 78,308 78,308 Bell Gardens -0.35 43,123 42,972 42,972 Beverly Hills -0.20 34,697 34,627 34,627 Bradbury -0.65 1,084 1,077 1,077 Burbank -0.21 106,175 105,952 105,952 Calabasas -0.19 24,284 24,239 24,239 Carson -0.01 93,609 93,604 93,604 Cerritos 0.86 50,280 50,711 50,711 Claremont 0.09 36,479 36,511 36,511 Commerce -0.25 13,054 13,021 13,021 Compton -0.28 98,985 98,711 98,711 Covina -0.08 48,914 48,876 48,876 Cudahy -0.28 24,s33 24,264 24,264 Culver City 0.96 39,790 40,173 40,173 Diamond Bar -0.13 57,572 57,495 57,495 Downey -0.18 114,413 114,212 114,212 Duarte -0.25 22,007 21,952 21,952 El Monte 0.76 116,315 117,204 117,204 ElSegundo .0.01 17,067 17,066 17,066 Gardena -0.19 61,158 61,042 61,042 Glendale 0.73 204,782 206,283 206.283 Glendora 0.07 52,086 52,122 52,122 Hawaiian Gardens -0.22 14,723 14,690 14,690 Hawthorne -0,16 87,996 87,854 87,854 Hermosa Beach 0.17 19.614 19,847 19,847 Hidden Hills -0.79 1,900 1,885 1,885 Huntington Park -0.06 59,386 59.350 59,350 Industry 0.00 432 432 432 Inglewood -0.19 112,759 112,549 112,549 Irwindale 4,08 1,447 1,506 1,506 `Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Fiscal Year 2019-20 Attachment B Annual Percent Change in Population Minus Exclusions" January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019 Total County Percent ChaWM --- Population Minus Exclusions - Population City 2018-2019 1.1-18 1-1-19 1-1-2019 La Canada Flintridge -0.10 20,623 20,602 20,602 La Habra Heights -0.07 5,489 5,485 6,485 Lakewood -0.13 B1,459 81,352 81,352 La Mirada -0.05 49,585 49,558 49,558 Lancaster 0.28 156,841 157,273 161,604 La Puente 0.19 40,719 40,795 40,795 La Verne -0.11 33,239 33,201 33,201 Lawndale -0.27 33,527 33,436 33,436 Lomita -0.06 20,776 20,763 20,763 Long Beach -0.21 475,921 474,941 475,013 Los Angeles 0.05 4,035,356 4,037,190 4,040,079 Lynwood -0,22 71,497 71,343 71,343 Malibu -7.42 13,011 12,046 12,046 Manhattan Beach -0.24 36,010 35,922 35,922 Maywood -0.21 28,029 27,971 27,971 Monrovia -0,14 38,582 38,529 38,529 Montebello -0.11 64,316 64,247 64,247 Monterey Park -0.38 62,061 61,828 61,828 Norwalk -0.12 106,077 105,950 106,744 Palmdale 0.06 157,782 157,854 157,854 Palos Verdes Estates -0.26 13,579 13,544 13,544 Paramount -0.01 55,503 55.497 55,497 Pasadena 0.90 145,003 146,312 146,312 Pico Rivera -0.42 64,306 64.033 64,033 Pomona 0.08 154,189 154,310 154,310 Rancho Palos Verdes -0,24 42,647 42,543 42,660 Redondo Beach 0.16 68,361 68,473 68,473 Rolling Hills -0,32 1,898 1,892 1,892 Rolling Hills Estates -0.08 8,254 8.247 8,247 Rosemead -0.25 55,237 55,097 55,097 San Dimas -0.25 34,669 34,584 34,584 San Fernando 1.32 24,593 24,918 24,918 San Gabriel -0.22 41,270 41,178 41,178 San Marino -0.06 13,360 13,352 13,352 Santa Clarity 2,70 212,378 218,103 218,103 Santa Fe Springs 0.04 18,208 18,216 18,261 Santa Monica -0.' 1 93.698 93,593 93.593 Sierra Madre -0.27 11,165 11,135 11,135 Signal Hill 0.31 11,758 11,795 11,795 South El Monte 0.95 21,092 21,293 21,293 "Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. AG. ITEN NO. 2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02/19, SD Fiscal Year 2019-20 Attachment B Annual Percent Change in Population Minus Exclusions' January 1, 2018 to January 1, 2019 and Total Population, January 1, 2019 Total County Percent Chance .-- Population Minus Exclusions -• Population City 2018-2019 1-1.18 1-1-19 1.1-2019 South Gate -0.25 97,019 96,777 96,777 South Pasadena -0.12 26,276 26,245 26,245 Temple City 0.37 36,447 36,583 36,583 Torrence -0.24 148,408 148,054 148,054 Vernon -0.33 302 301 301 Walnut -0.02 30,557 30,551 30,551 West Covina -0.25 108,388 108,116 108,116 West Hollywood -0.17 36.723 36,660 36,660 Westlake Village -0.86 8,451 8,378 8,378 Whittier -0.26 87,756 87,526 87,526 Unincorporated -0.87 1,055,092 1,045,918 1,046,858 County Total -0.01 10,245,275 10,244,542 10,253,716 r 'Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. AG. ITEN NO-2- ACTION: ADOPT RESO-CITY'S APPROPRIATION LIMIT IN THE SAME AMOUNT AS FY 2018/2019 07/02119, SD OFFICE OF THE ASSESSOR / `\ COUNTY OF LOS ANGUI..ES ASSESSOH,soo f (*`— west TEMPLE STREET� LOS ANGELES, CALWORNIA 9W12.2770 Angeles C C)ln' y assaanor.lacounty.gov JPF4FOEiY f'MANC7 1 (989) 80-2111 Valuing People Assrsaar mid Property May 9, 2019 Masami Higa Assistant Finance Director City of Vernon I� 4305 Santa Fe Avei le Vernon, California 90058 Dear Ms. Masami 1-liga, 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 g1ty over that of the preceding year, due to nonresidential new construction. For the City of Vernon, the 2018-2019 net change in nonresidential new construetion, applicable to the 20 i 9-2020 budget, is 23.25%. If we can be of furtl # service, please call Tia Nguyen at (213) 974-3229. 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