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 . H
.I
Ms. Angela Melgar
Finance Manager
City of Vernon
4305 Santa Fe Ave
Vernon, CA 90058
Dear Ms. Angela Melgar:
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April 11, 2024
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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 16.67o/o.
Ifwe can be of further service, please call Kevin Quon at (213) 974-4877.
Enclosures
Sincerely,
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Kevin Quon
Appraiser
Quality Assurance
COUNTY OF LOS ANGELES - OFFICE OF THE ASSESSOR
Proposition 111 Analysis
Non-Residential New Construction
I New Construction I Lesser Maintenance I Other Construction I (SE City Report) Current - 7/9/23 Commercial - Authorizations $0 $35,310,240 $0
Industrial Current $0 $126,794 $0
Authorizations $0 $0 $0
Other
Current $0 $0 $0
Total New Construction $0 $35,437 ,034 $0
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
Net Increase in New Non-Res Construction from Prior Year City Total
I
Secured RE & PP
I
Unsecured PP I Net Assessed Values I (SV 16 Report) Exemptions Exemption Current Year - 7/11/23 $4,030,273 $66,948 $7,934,861, 122 Prior Year - 7/21/22 $236,626 $0 $7 ,270,299, 791
Net Increase in Local Assessment Roll From Prior Year
Percentage Increase Allowable= New Non-Res Growth I Total Roll Growth X 100 = Percentage Increase Allowable (without Fixtures)
Total New
Construction
$35,310,240
$126,794
$0
$0
$35,437,034
$76,008,374
$111,445,408
Total Assessed
Values
$7,938,958,343
$7,270,536,417
$668,421, 926
YEAR 2023-2024 City of Vernon AGENCY NO. -
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 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
South Gate
South Pasadena
Temple City
Torrance
Vernon
0.03 -0.37
-0.18
-0.36
-0.49
92,701
26,367
36,040
143,433
206
92,729
26,270
35,975
142,910
205
92,729
26,270
35,975
142,910
205
Walnut
West Covina
West Hollywood
Westlake Village
Whittier
Unincorporated
-0.10
0.65 -0.44
-0.45
0.22 -0.19
27,896
108,404
35,229
7,938
87,333
998,818
27,867
109,105
35,075
7,902
87,527
996,956
27,867
109,105
35,075
7,902
87,527
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