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Home My WebLink About8.1 RevApproLimFY2001-2 CITY CLERK File # 330-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 24, 2002 SUBJECT: Adoption of a Revised Appropriations Limit for Fiscal Year 2001-2002 (Prepared by: Carole A. Perry, Administrative Services Director and Fred Marsh, Finance Manager) ATTACHMENTS: 1. Resolution 2. Revised Calculation of Fiscal Year 2001-2002 Appropriations Limit RECOMMENDATION: /") ]t~>//Approve the selected factors used to calculate the Revised \ 2001-2002 Limit and adopt the Resolution. FINANCIAL STATEMENT: The proposed Revised Limit for Fiscal Year 2001-2002 is $78,204,277, and only $26,388,252 in appropriations for Fiscal Year 2001-2002 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 2001-2002 Limit was calculated and adopted by Resolution 104-01 on June 21, 2001. At the time the Limit was adopted, f'mal 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 2001 ~2002. 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: a:\BudgetVippropriation Limit\FY 2002-2003~Approp limit REVISED FY01-02 Agenda Rpt. DOC ITEM NO. _~nb i 2001-2002 Proposed Revised Appropriations Limit Staff has prepared the calculations necessary to adopt the Revised Limit for Fiscal Year 2001-2002 in accordance with State Law and with thc Uniform Guidelines of the League of California Cities. The discretionary factors selected in calculating the 2001-2002 Revised Limit are: (1) the change in the City of Dublin Population, which represents the January 1,2001 population provided by the State Department of Finance; and (2) the change in thc assessed valuation from local non-residential construction, which represents the figures provided by the County Assessor from the final 2000-2001 property tax roll. The Revised 2001-2002 Appropriations Limit, as calculated on Attachment 2 of thc Proposed Resolution (Attachment 1) is $78,204,277, based upon a revised adjustment factor of 28.9% over the 2000-2001 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 2001-2002 that are subject to the Limit total $26,388,252 which is significantly below the allowed amount. Staff has prepared a Resolution (Attachment 1) that will adopt a Revised Appropriations Limit for 2001-2002. RECOMMENDATION Staff recommends that the City Council adopt the attached Resolution. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A REVISED APPROPRIATIONS LIMIT FOR FISCAL YEAR 2001-2002 OF $78,204,277 WHEREAS, State law requires that an Appropriations Limit ("Limit") bc adopted by the City Council in conjunction with the Annual Budget process; and WHEREAS, the City Council previously adopted resolution 104-01 establishing an Appropriations Limit for Fiscal Year 2001-2002; and WHEREAS, at the time the "Limit" was adopted fmal information related to thc population for thc City of Dublin and thc amount of"Non-Residential Assessed Valuation", both of which are used in the calCttlation of thc 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 2001-2002 Appropriations Limit used the following discretionary factors: (1) thc Growth in thc City Population and (2) thc change in thc assessed valuation of local non- residential construction; and thc calculation of the revised Appropriations Limit for 2001-2002 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 2001-2002 of $78,204,277 BE IT FURTHER 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 24th day of June, 2002. AYES: NOES: ABSENT: ATTEST: Mayor ' City Clerk · ATTACHMENT REVISED CALCULATION OF FISCAL YEAR 2001-2002 APPROPRIATIONS LIMIT (Based On Adopted Fiscal Year 2000-2001 Limit) A. SELECTION OF OPTIONAL FACTORS 1. Population - City vs. County (% Decrease) 0.1/01/2000 01/01/2001 % Increase City of Dublin 27,230 30,428 11.744% OR Alameda County 1,450,637 1,474,143 1.620% 2. State Income vs. City Non-Residential Buildinq Change in State Per Capita Income = 7.820% OR Change in Non-Residential Assessed Valuation - 15.31% B. CALCULATION OF GROVVTH LIMIT ADJUSTMENT The formula for calculating the adjustment is as follows: Selected Factor 1 + 100 = 100 Selected Factor 2 + 100 = Y 100 (X) x (Y) = Fiscal Year 2001-2002 Appropriations Limit Adjustment Factor 11.744+100 = 1.11744 (No change from original calculation) 100 15.31+100 = 1.1531 (Originally was 1.10242) 100 1.11744 x 1.1531 = 1.2885 = 2001-2002 Adjustment Factor (Originally was 1.2319) C. CALCULATION OF APPROPRIATIONS LIMIT Fiscal Year 2000-2001 Appropriations Limit = $ 60,694,045 Fiscal Year 2001-2002 Adjustment Factor x 1.2885 ATTAC~ 2