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Home My WebLink About8.1 Appropriations FY 2006-2007 CITY CLERK File # D~[2]~{~]~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 13, 2006 SUBJECT Adoption ofan Appropriations Limit for Fiscal Year 2006-2007 (Prepared hv- Fred Marsh, Finance Manager and Lisa Hisatumi, Administrative Ana~vst Il) ATTACHMENTS: I 2. Resolution CalcuJatlon of Fiscal Ycar 2006-2007 Appropnatlons Limit RECOMMENDATION /J .~pprovc thc selected factors used to calculatc thc 2006-2007 Limlt / \ {.Ii..... and adopt the ResolutIon. FINANCIAL STATEMENT The proposcd Limit for Fiscal Year 2006-2007 is $139,079,544 and only $36,6l4,921i III Appropriations for Fiscal Year 2006-2007 are subject to thiS Limit. DESCRIPTION Each year the City Council IS requlred hy State Law to adopt an Appropriations Limit (Limit) III conjunctIon with the annual Budget proccss. The 2006-2007 Appropriations Limit is calculated hy multiplying thc adoptcd Limit for the prior year by a faclor refleding growth increases. Descriotion of Aoorooriations Umit The laws regulating the application of the Limit forbid an agency trom appropriating specIfic funds that would excecd thc Limit. The restnctIon apphes to appropriating momes categorized as "Proceeds of Taxes." The LllllJt carnes forward each ycar and is subject to an adjustmcnt in accordance wlth a specificd formula. Each government entity is rcquircd to calculate a Limit and mclude it as part of the Am1Ual Budget. This Limit may also be referred to as the Gann LJmit or Proposition 4 Limit. The City has complicd with this reqUlrement, as well as the posting of thc proposed calculatIon prior to adoption. The adjustment JS made annually and is bascd on a formula which may uwlude the following factors (the Clty has the discrction to choose one factor from each category helow). . Change in City population, or . Change III populatIOn for the enhre County; and . Changc in Statc pcr capita income; or . Change in non-residential assessed valuatl\lll. ___________________________________________________~~_~~R~____________________________W~M_~~~________________ COPIES TO: 10f2 TTEMNO.~ 2006-2007 Proposed Appropriations Limit Staff has prepared the calc~tlahons necessary to adopt the Limit for Fiscal Y car 2006-2007 in accordancc wIth Statc Law and with thc Unifoffil Guidelines of the Leaguc of CalifornIa Cihes. Thc discretionary factors selected in calculatlllg the 2006-2007 Limit are: (l) the change in thc City populatIOn; and (2) change in State per capita income. The data from the Co~mty Assessor is considered preliminary If the Assessor provides a final computation related to "non"residential constructIon" added to the tax roll that IS significantly different, Staff may recommend the adoption of a reVlSlOn to the calculated Limit. Staffwi1l evaluate the deSirability of amending the Limit in conJunchon with the adoption ofthe Limit next year. The new 200h-2007 Appropriations Limit as calculated (m Attachment 2 of the Proposed Resolution (Attachment 1) is $139,079,544, based upon an adjustment factor of 8.78% over the Revised 2005-2006 Limit. The Preliminary 20ll6-2007 Budget (including the recommended Higher Service Levels) includes appropriations subject to the Limit totaling $36,h14,926 that would be categonzed as "Proceeds of Taxes"- Therefore, the appropriations subject to the Appropriations LimJt are below the allowed amount by $102,464,61!l. Allhough the City is well below its allowed Limit, it is important to make revisions in a timely maImer. For record keeping purposes, the LImit carries forward each Fiscal Year; an accurate base simplifies the calculation for the foll(lwing Fiscal Year The City must also adopt a Limit prior to the beginning of the Fiscal Year, in accordance with State Law Staff has prepared a Resolution (Attachment 1) that will adopt an Appropriations Limit for 2006-2007 RECOMMEND A nON Staff recommends that the City Council adopt the attached Resolution. 20f2 / pi 01- RESOLUTION NO. - 06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************************** ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2006-2007 OF $139,079,544 WHEREAS, State law requires that an Appropriations Limit be adopted by the City Council in conjunction with the Amlual Budget process; and WHEREAS, ArtIcle XTTT B of the California Constitution places certain restrictions on appropriatJons made by cities; and WHEREAS, the restrictions are applicable to appropriations, which are defined as "Proceeds of Taxes", and WHEREAS, the law allows the option to select the factors to he 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 (I) the change in the State per capita income, or, (2) the change in the assessed valuation oflocal non-residential construction; and WHEREAS, the 2006-2007 Appropriations Limit used the following diseretlOnary factors: (1) the change in the City population and (2) change in State per capita income; and WHEREAS, the calculation of the Appropriations Limit for 2006-2007 is described in Attachment 2, attached hereto and by reference made a part hereof. NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Dublin does heTehy adopt the City of Dublin Appropriations Limit for Fiscal Year 2006-2007 of$139,079,544. BE IT FURTHER RESOLVED that the hmit has bcen calculated in accordance with State Law and is shown III Attachment 2, attached hereto. PASSED, APPROVED AND ADOPTED this 13th day of June, 2006 AYES NOES. ABSENT Mayor ATTEST City Clerk ~.I r,,/13!oro ATTACHMENT I Jald. CALCULATION OF FISCAL YEAR 2006-2007 APPROPRIATIONS LIMIT (Based On Fiscal Year 2005-2006 Limit) A. SELECTION OF OPTIONAL FACTORS 1 Population - City vs. County (% Decrease) 01/01/2005 01/01/2006 % Increase City of Dublin 37,852 39,610 4.640% QB Alameda County 1,503,926 1,506,532 0.173% Selected Factor #1 = City of Dublin Population Growth 4.64% 2. State Income vs. City Non-Residential Buildinq Change in State Per Capita Income = 3.96% Change in Non-Residential Assessed Valuation = 1.51 %"" ""(Based on preliminary tax roll information available from the Alameda County Assessor May, 2006. The final tax roll figure may be different. ) Selected Factor #2 " Change in State Per Capita Income 3.96% QB B. CALCULATION OF GROWTH LIMIT ADJUSTMENT The formula for calculating the adjustment is as follows: Selected Factor 1 + 100 100 Selected Factor 2 + 100 100 (X) x (Y) = Fiscal Year 2006~2007 Appropriations Limit Adjustment Factor = X = Y 4.64+100 100 = 10464 3.96+100 100 = 10396 1 0464 x 1 0396 = 1.0878 = 2006-2007 Adjustment Factor C. CALCULATION OF APPROPRIATIONS LIMIT Fiscal Year 2005-2006 Appropriations Limit = Fiscal Year 2006-2007 Adjustment Factor Fiscal Year 2006-2007 Appropriations Limit $127,853,966 x 1.0878 $139,079,544 A TT ACHMENT 2