Resolution No. 2024-009RESOLUTION NO. 2024-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-
2025, PURSUANT TO GOVERNMENT CODE SECTION 7910
SECTION 1. Recitals.
A. Government Code Section 7910 (GANN initiative), passed by California voters on
November 6, 1979, requires the governing body of each local jurisdiction to establish by
resolution an appropriations limit for each fiscal year at a regularly scheduled meeting or
noticed special meeting.
B. Proposition 111 was passed by California voters on June 5, 1990, and sets forth
the options for making annual adjustments to the appropriations limit based on various
growth factors. The annual inflation factor may be either the growth in California per
capita income or growth in non-residential assessed valuation due to new construction
within the City; and the population factor may reflect the population growth either in the
City or in the County of Los Angeles.
C. The City calculated its appropriations 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 2022-2023,
2023-2024, and 2024-2025.
D. In accordance with Government Code Section 7910, documentation used in the
determination of the appropriations limit has been made available for inspection by the
public at least fifteen (15) days prior to the hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
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Resolution No. 2024-09
Page of 3
_______________________
SECTION 3. The City Council hereby establishes $3,065,487,178 as the amount
of the appropriations limit for fiscal year 2024-2025, in accordance with the provisions
of Government Code Section 7910 and Proposition 111.
The computation for fiscal year 2024-2025 is as follows:
2024-2025 APPROPRIATIONS LIMIT CALCULATION
2023-2024 Appropriations Limit $2,626,172,281
Increase in Nonresidential Construction: 16.67%
Los Angeles County population change: 0.05%
1.1667 x 1.0005= x 1.16728335
$3,065,487,178
SECTION 4. The City Council approved the Fiscal Year 2024-2025 Budget by
adoption of a resolution, which did not exceed the appropriations limit for Fiscal Year
2024-2025.
SECTION 5. The Deputy City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED June 4, 2024.
_______________________
JUDITH MERLO, Mayor
ATTEST:
YONNIE PARKER, Deputy City Clerk
(seal)
APPROVED AS TO FORM:
_____________________________
ZAYNAH N. MOUSSA, City Attorney
Resolution No. 2024-09
Page 3 of 3
_______________________
I CERTIFY THAT RESOLUTION NO. 2024-09 was passed and adopted by the City
Council of the City of Vernon at the Regular Meeting on June 4, 2024, by the following
vote:
AYES: 5 Council Members: Larios, Lopez, Rivera, Ybarra, Merlo
NOES: 0
ABSENT: 0
ABSTAIN: 0
________________________________
YONNIE PARKER, DEPUTY City Clerk
(seal)
City Council Agenda Report
Meeting Date: June 4, 2024
From: Jessica Alcaraz, Financial Services Administrator
Department: Finance
Submitted by: Angela Melgar, Finance Manager
Subject
Fiscal Year 2024-25 Citywide Annual Operating Budget, Capital Improvement Plan, and
Appropriations Limit (Gann)
Recommendation
A. Adopt Resolution No. 2024-08 approving and adopting the Annual Operating Budget and the
Capital Improvement Plan for Fiscal Year 2024-25; and
B. Adopt Resolution No. 2024-09 adopting the Appropriations Limit for Fiscal Year 2024-25
pursuant to Government Code Section 7910.
Background
FY 2024-25 Operating and Capital Budget
In anticipation of the Fiscal Year (FY) 2024-25 Budget adoption, Finance staff presented two
Budget Workshops to outline the proposed budget and allow City Council to gain an in depth
understanding of the City's operations and intended fiscal direction. Collaboration between all
City departments ensured a unified vision, under the City Administrator's leadership, for the
upcoming fiscal year. The current economic environment remains uncertain. While a full-on
recession seems unlikely in the upcoming months, inflation and interest rates remain high and
unlikely to decrease in the near future, which is likely to lead to some economic slowdown. In this
interim period of key changes to some of the City's largest and most longstanding customers, a
cautious approach will ensure the City's continued ability to serve its constituents and be an
environment where business thrives. Areas of cost-savings and operational efficiencies have
been identified, potential new revenue streams are being researched, and continued investment
in infrastructure have all been prioritized to maintain the high-quality City services to which
residents and businesses are accustomed.
As required by Chapter 8.2 of the City's Charter, staff presented the proposed budget for FY
2024-25 to City Council on May 7, 2024. Budget Workshop I focused on the vision for the City in
the upcoming year and the individual department changes from the previous fiscal year.
Budget Workshop II on May 21, 2024, covered the changes in General and Enterprise Fund
budgets from previous versions, detailing the current iterations for Council's consideration.
Pursuant to Chapter 8.4 of the City's Charter, on June 4, 2024, a public hearing will be held and
the final version of the FY 2024-25 Budget is then presented to City Council for adoption to go
into effect July 1, 2024 through June 30, 2025. Adoption of Resolution No. 2024-08 approves the
Citywide Annual Operating Budget and Capital Improvement Plan.
Gann Limit
California voters approved an initiative on November 6, 1979 that added Article XIIIB to the State
Constitution, which placed limits on the amount of revenue that can be appropriated by all entities
of government. This State Appropriations Limit is often referred to as the Gann Limit (Gann),
named after Paul Gann, the author of the measure placing the limit in the State constitution. In
accordance with that legislation, the governing body of each government jurisdiction must, by
resolution, establish its annual Appropriations 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). As a result of Proposition
111, the City is required to choose between two annual inflation factors: (1) the growth in
California per capita income; or (2) the growth in non-residential assessed valuation due to new
construction within the City; and two population factors: (1) the growth in the City; or (2) county
population. For the FY 2024-25 Gann appropriations limit calculation, the growth in non-
residential assessed valuation due to new construction within the City and the percentage growth
in County population was used, which has been the same method used since FY 2017-18.
The City's appropriations subject to the limit have remained well below the Gann Appropriations
Limit. Given the size of this gap, it is unlikely that the City will exceed the Appropriations Limit in
the upcoming years without significant changes to the City's tax structure. The documentation
used in the determination of the appropriations limit has been made available for public inspection
on the City's website at least 15 days prior to adoption. Adoption of Resolution No. 2024-09
adopts the Appropriations Limit for Fiscal Year 2024-25 pursuant to Government Code Section
7910.
Pursuant to Government Code Section 65090, on May 23, 2024, the public hearing notice was
posted at City Hall, the City's website and published in the Los Angeles Wave (Huntington Park
Bulletin).
Fiscal Impact
The FY 2024-25 Budget proposes total expenditure appropriations of$401,931,299 which is well
under the $3,065,487,178 appropriation limitation imposed pursuant to Gann.
Attachments
1. Resolution No. 2024-08
2. Resolution No. 2024-09
3. Gann Limit Calculation
4. Public Hearing Notice
041 O,r
c 'IIII
DEPARTMENT OF Gavin Newsom • Governor
c9`"°as'F I N A N C E 1021 O Street,Suite 3110 • Sacramento CA 95814 • www.dof.ca.gov
April 30, 2024
Dear Fiscal Officer:
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, 2024, in conjunction with a change in the cost of living, or price factor, to
calculate their appropriations limit for fiscal year 2024-25. Attachment A provides the
change in California's per capita personal income and an example for utilizing the
factors to calculate the 2024-25 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.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, 2024. Please note: The prior year's city population estimates may be revised. The
per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic
Research Unit at (916) 323-4086.
/s Erika Li
Attachment
April 2024
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 2024-25
appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a
2024-25 appropriation limit.
2024-25:
Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362
100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1 .0362 x 1.0017 = 1.0379
;/ .- „ ( I )! \ I \ ( 11 I.citi \\c.11.11 '
70417 IV:
April 11, 2024
Ms. Angela Melgar
Finance Manager
City of Vernon
4305 Santa Fe Ave
Vernon, CA 90058
Dear Ms. Angela Melgar:
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 2023-2024 net change in nonresidential new
construction, applicable to the 2024-2025 budget, is 16.67%.
If we can be of further service, please call Kevin Quon at (213) 974-4877.
Sincerely,
- -
)
Kevin Quon
Appraiser
Quality Assurance
Enclosures
COUNTY OF LOS ANGELES - OFFICE OF THE ASSESSOR
Proposition 111 Analysis
Non-Residential New Construction Total New
(SE City Report) Current 7/9/23 New Construction Lesser Maintenance Other Construction Construction
Commercial - iAuthorizations $0 $35,310,240 $0 $35,310,240
Industrial Current $0 $126,794 $0 $126,794
Authorizations $0 $0 $0 $0
Other - -
'Current $0 $0 $0 $0
Total New Construction $0 $35,437,034 $0 $35,437,034
Add Fixtures (SV16 Report) Current - 7/11/23 $844,150,057
Less Fixtures (SV16 Report) Prior - 7/21/22 $768,141,683
Net Fixtures Adjustment $76,008,374
Net Increase in New Non-Res Construction from Prior Year $111,445,408
City Total Secured RE & PP Unsecured PP Total Assessed
(SV 16 Report) Exemptions Exemption Net Assessed Values Values
Current Year - 7/11/23 $4,030,273 $66,948 $7,934,861,122 $7,938,958,343
___
Prior Year - 7/21/22 $236,626 $0 S7,270,299,791 $7,270,536,417
Net Increase in Local Assessment Roll From Prior Year $668,421.926
Percentage Increase Allowable = New Non-Res Growth / Total Roll Growth X 100 = 16.67%
Percentage Increase Allowable (without Fixtures) 5.30%
YEAR 2023-2024 AGENCY City of Vernon AGENCY NO. 276.00
Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1,2023 to January 1,2024 and Total Population,January 1,2024
Total
County Percent Change --- Population Minus Exclusions --- Population
City 23-24 1-1-23 1-1-24 1-1-24
South Gate 0.03 92,701 92,729 92,729
South Pasadena -0.37 26,367 26,270 26,270
Temple City -0.18 36,040 35,975 35,975
Torrance -0.36 143,433 142,910 142,910
Vernon -0.49 206 205 205
Walnut -0.10 27,896 27,867 27,867
West Covina 0.65 108,404 109,105 109,105
West Hollywood -0.44 35,229 35,075 35,075
Westlake Village -0.45 7,938 7,902 7,902
Whittier 0.22 87,333 87,527 87,527
Unincorporated -0.19 998,818 996,956 997,587
County Total 0.05 9,810,925 9,815,428 9,824,091
'Exclusions include residents on federal military installations and group quarters residents in state mental
institutions,state and federal correctional institutions and veteran homes.
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 2023 FY 2024 FY 2025
Price Factors:
(A) Percent growth in State per Capita Personal Income: 7.55% 4.44% 3.62%
(Source: California Department of Finance)
Price Factor A 1.0755 1.0444 1.0362
(B) Percent change in Assessed Valuation in new
non-residential construction 21.82 11.17 16.67
(Source: Los Angeles County Assessor's Office)
Price Factor B 1.2182 1.1117 1.1667
Population Factors:
(C) Percentage growth in County Population -0.71 -0.75 0.05
(Source: California Department of Finance)
Population Factor C 0.9929 0.9925 1.0005
(D) Percent growth in City Population -0.95 -0.97 -0.49
(Source: California Department of Finance)
Population Factor D 0.9905 0.9903 0.9951
Annual Adjustment Factors:
Based upon the actual data,the four alternative adjustment factors are as follows:
A x C 1.06786395 1.03656700 1.03671810
A x D 1.06528275 1.03426932 1.03112262
B x C 1.20955078 1.10336225 1.16728335
B x D 1.20662710 1.10091651 1.16098317
CITY OF VERNON
APPROPRIATION LIMIT UNDER PROPOSITION 4 AND
SECTION 7901 OF THE GOVERNMENT CODE
2024-2025 APPROPRIATION LIMIT CALCULATION
2023-2024 Appropriation Limit 2,626,172,281
Increase in Nonresidential Construction 16.67%
Los Angeles County population change 0.05%
1.1667 X 1.0005=1.16728335 X 1.16728335
2024-2025 Appropriation Limit 3,065,487,178
e_
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( VERNON' ?
" CALIFORNIAA
NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will conduct a public hearing on June 4, 2024, at 9:00
a.m. (or as soon thereafter as the matter can be heard)which you may attend at Vernon City
Hall, City Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058 to:
Consider Adoption of Fiscal Year 2024-25 Proposed Citywide
Budget, Capital Improvement Plan, and Governmental Appropriation
Limit (Gann Limit)
All relevant documents will be available for public review on the City's website once the
agenda for the meeting is posted or from the City Clerk at CityClerk a(�cityofvernon.orq or
(323) 583-8811, ext. 546. All interested persons will be given an opportunity to comment
on the above-referenced items during the public hearing. In addition, written comments
or questions may be submitted prior to the hearing as set forth below. Written Testimony
or questions must be received prior to 9:00 a.m. on the date of the hearing.
Please send your comments or questions to:
Jessica Alcaraz, Financial Services Administrator
City of Vernon
4305 Santa Fe Avenue, Vernon, CA 90058
(323) 583-8811, ext. 259 Email:jalcaraz@cityofvernon.org
If you challenge the adoption of the Fiscal Year 2024-25 Proposed Citywide Budget,
Capital Improvement Plan, and/or the Gann Limit or any provision thereof in court, 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.
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance
to participate in the meeting, please contact the City Clerk Department at (323) 583-8811, ext.
546 at least 48 hours prior to the meeting to assure arrangements can be made.
The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time
and place without further notice of a public hearing.
Dated: May 15, 2024 Yonnie Parker, Deputy City Clerk
Publish: May 23, 2024
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Mailing Address:915 E 1ST ST, LOS ANGELES,CA 90012
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Yonnie Parker
CITY OF VERNON CITY CLERK
4305 SANTA FE AVE
VERNON, CA 90058 PRE# 3814632
NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will
conduct a public hearing on June 4,2024,at 9:00
a.m.(or as soon thereafter as the matter can be
heard)which you may attend at Vernon City Hall,
City Council Chamber, 4305 Santa Fe Avenue,
COPY OF NOTICE VeConsiderAdrnon,CA opto
Consider Adoption of Fiscal Year 2024-25
Proposed Citywide Budget,Capital
Improvement Plan,and Governmental
Appropriation Limit(Gann Limit)
All relevant documents will be available for public
review on the City's website once the agenda for
the meeting is posted or from the City Clerk at
Notice Type: HRG NOTICE OF HEARING CitvClerk{tcitvofvernon.orq or (323) 583-8811,
ext. 546.All interested persons will be given an
opportunity to comment on the above-referenced
Ad Description items during the public hearing. In addition,
Notice of Public Hearing-FY 2024-25 Citywide Budget and Gann Limit written commentsthehearing or questions forth may to . Witten
� g prior to the as set below. Written
Testimony or questions must be received prior to
9:00 a.m.on the date of the hearing.
Please send your comments or questions to:
To the right is a copy of the notice you sent to us for publication in the Jessica Alcaraz,Financial Services Administrator
HUNTINGTON PARK BULLETIN. Please read this notice carefullyand call City of Vernon
us 4305 Santa Fe Avenue,Vernon,CA 90058
with any corrections.The Proof of Publication will be filed with the County (323)583-8811,ext.259 Email:
jcityoClerk,if required,and mailed to you after the last date below. Publication If you challengeraz theadopti nnof the Fiscal Year
date(s)for this notice is(are): 2024-25 Proposed Citywide Budget, Capital
Improvement Plan,and/or the Gann Limit or any
05/23/2024 provision thereof in court,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.
In compliance with the Americans with Disabilities
Act (ADA), if you need special assistance to
participate in the meeting,please contact the City
An invoice will be sent after the last date of publication. If you prepaid this Clerk least Department
p attr( 23)o 583-881i1,ext.
to 546ass at
order in full,you will not receive an invoice. arrangements can be made.
The hearing may be continued, adjourned, or
cancelled and rescheduled to a stated time and
place without further notice of a public hearing.
Yonnie Parker,Deputy City Clerk
Dated:May 15,2024
Publish:May 23,2024
5/23/24
PRE-3814632#
HUNTINGTON PARK BULLETIN
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