HomeMy WebLinkAbout8.1 RvisedAppropLmits03-04 CITY CLERK
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 28, 2004
SUBJECT: Adoption of a Revised Appropriations Limit for
Fiscal Year 2003-2004
(Prepared by: Fred W. Marsh, Finance Manager
and Lisa Hisatomi, Administrative Analyst II)
ATTACHMENTS: 1. Resolution
2. Revised Calculation of Fiscal Year 2003-2004
Appropriations Limit
RECOMMENDATION: ,/~M0f Approve the selected factors used to calculate the Revised 2003-
/kc''' 2004 Limit and adopt the Resolution.
FINANCIAL STATEMENT: The proposed Revised Limit for Fiscal Year 2003-2004 is
$105,367,283 and only $28,81.0,128 in appropriations for Fiscal
Year 2003-2004 are subject to this Limit.
DESCRIPTION:
Each year the City Council is required by State Law to adopt an Appropriations Limit (Limit) in
conjunction with the annual Budget process. The 2003-2004 Limit was calculated and adopted by
Resolution 112-03 on June 24, 2003. At the time the Limit was adopted, final information relating to the
population for the City of Dublin and the amount of Non-Residential Assessed Valuation, both of which
are used in the calculation of the Limit, was not available. Now that the information is available, it is
recommended that the Council adopt a Revised Limit for Fiscal Year 2003-2004.
Description of Appropriations Limit
The laws regulating the application of the Limit, forbid an agency from appropriating specific funds that
would exceed the Limit. The restriction applies to appropriating monies categorized as "Proceeds of
Taxes." The Limit carries forward each year and is subject to an adjustment in accordance with a
specified formula.
Each government entity is required to calculate a Limit and include it as part of the Annual Budget. This
Limit may also be referred to as the Gann Limit or Proposition 4 Limit. The City has complied with this
requirement, as well as the posting of the proposed calculation prior to adoption. The adjustment is made
annually and is based on a formula which may include the following factors (the City has the discretion to
pick one factor from each category below):
· Change in City population; or
· Change in population for the entire County;
and
· Change in State per capita income; or
· Change in non-residential assessed valuation.
COPIES TO:
Document in Gann Limit. XLS ITEM NO. ~1
2003-2004 Proposed Revised Appropriations Limit
Staff has prepared the calcUlations necess~ t° adoPt the Revised Limit for Fiscal Year 2003-2004 in
accordance with State Law and with the Uniform Guidelines of the League of California Cities. The
discretionary factors selected in calculating the 2003-2004 Revised Limit are: (1) the change in the City
population, which represents the January 1, 2003 population provided by the State Department of Finance;
and (2) the change in the assessed valuation from local non-residential construction, which represents the
figures provided by the County Assessor from the final 2002-2003 property tax roll.
The Revised 2003-2004 Appropriations Limit, as calculated on Attachment 2 of the Proposed Resolution
(Attachment 1) is $105,367,283, based upon a revised adjustment factor of 14.5% over the 2002-2003
Limit. Upon adoption, this figure becomes the base limit, which will be increased by the adjustment factor
calculated for the subsequent fiscal year. Total appropriations for Fiscal Year 2003-2004 that are subject
to the Limit total $28,810,1.28 which is significantly below the allowed amount.-Staff has prepared a
Resolution (Attachment 1) that will adopt a Revised Appropriations Limit for 2003-2004.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
RESOLUTION NO. - 04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
ADOPTING A REVISED APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2003-2004 OF $105,367,283
WHEREAS, State law requires that an Appropriations Limit ("Limit") be adopted by the City
Council in conjunction with the Annual Budget process; and
WHEREAS, the City Council previously adopted resolution 112-03 establishing an
Appropriations Limit for Fiscal Year 2003-2004; and
WHEREAS, at the time the "Limit" was adopted final information related to the population for
the City of Dublin and the amount of"Non-Residential Assessed Valuation", both of which are used in the
calculation of the limit, was unknown; and
WHEREAS, Revised population estimates and assessed valuations are now available; and
WHEREAS, the law allows the option to select the factors to be used in the calculation of the
AppropriationS Limit; and
WHEREAS, the City must select between the following factors: (A) the change in City
population, or, (B) Countywide population, and either: (1) the change in the State per capita income, or (2)
the change in the assessed valuation of local non-residential construction; and
WHEREAS, the revised 2003~2004 Appropriations Limit used the following discretionary
factors: (1) the chun.ge in the City population and (2) the change in the assessed valuation from local, non-
residential construction; and the calculation of the revised Appropriations Limit for 2003-2004 is
described in Attachment 2, attached hereto and by reference made a part hereof.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby adopt the City of Dublin Revised Appropriations Limit for Fiscal Year 2003-2004 of
$105,367,283.
BE IT FURTItER RESOLVED that the limit has been calculated in accordance with State Law
and is shown in Attachment 2, attached hereto.
PASSED, APPROVED AND ADOPTED this 28th day of June, 2004.
AYES:
NOES:
ABSENT:
ATTEST: Mayor
City Clerk
ATTACHMENT 1
REVISED CALCULATION OF FISCAL YEAR 2003-2004
APPROPRIATIONS LIMIT
(Based On Adopted Fiscal Year 2002~2003 Limit)
A. SELECTION OF OPTIONAL FACTORS
1. Population - City vs. County (% Decrease)
01/01/2002 01/01/2003 % Increase
City of Dublin 31,295 33,910 8.356%
OR
Alameda County 1,482,786 1,483,809 0.069%
Selected Factor #1 = City of Dublin Population Growth 8.356%
2. State Income vs. City Non-Residential Buildinq
Change in State Per Capita Income = 2.31%
OR
Change in Non-Residential Assessed Valuation = 5.708%
Selected Factor #2 = Change in Non-Residential Building 5.708%
B. CALCULATION OF GROVVTH LIMIT ADJUSTMENT
The formula for calculating the adjustment is as follows:
Selected Factor 1 + 100 = X
100
Selected Factor 2 + 100 = Y
100
(X) x (Y) = Fiscal Year 2003-2004 Appropriations Limit Adjustment Factor
8.356+100 = 1.08356 (Originally was 1.06407)
100
5.708+100 = 1.05708 (Originally was 1.02310)
100
1.08356 x 1.05708 = 1.1454 = 2003-2004 Adjustment Factor (Originally was 1.0887)
C. CALCULATION OF APPROPRIATIONS LIMIT
Fiscal Year 2002-2003 Appropriations Limit = $91,991,691
Fiscal Year 2003-2004 Adjustment Factor x 1.1454
Fiscal Year 2003-2004 Appropriations Limit $105,367,283
(Originally was $100,151,354)
ATTACHMENT 2