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Home My WebLink About8.2 Appro Limit 2000-01 CITY CLERK File # 0330-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE:"(June 21, 2000) SUBJECT: Adoption of an Appropriations Limit for Fiscal Year 2000-2001 (Prepared by: Fred Marsh, Finance Manager) EXHIBITS ATTACHED: RECOMMENDATION: Proposed Resolution ~pprove the selected factors used to calculate the 2000-2001 Limit and adopt the Resolution. FINANCIAL STATEMENT: The proposed Limit for Fiscal Year 2000-2001 is $63,335,696 and only $21,226,010 in Appropriations for Fiscal Year 2000-2001 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 2000-2001 Appropriations Limit is calculated by multiplying the adopted Limit calculated for the prior year, by a factor reflecting growth inCreases. 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: \~DUBLINFS2~PCCOMMON~Budget~Appropriation Limit~Agenda Rpt. DOC ITEM NO. 2000-2001 Proposed Appropriations Limit Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2000-2001 in accordance with State Law and with thc Uniform Guidelines of the League of California Cities. Thc discretionary factors selected in calculating the 2000-2001 Limit are: (1) the change in thc City Population; and (2) thc change in the assessed valuation from local non-residential construction. The data from thc County Assessor is considered preliminary. If thc Assessor provides a final computation related to "non- residential construction" added to the tax roll, which is significantly different, Staff may recommend the adoption of a revision to the calculated Limit. Staff will evaluate the desirability of amending the Limit in conjunction with thc adoption of the Limit next year. The new 2000-2001 Appropriations Limit as calculated on Exhibit A of the Proposed Resolution (Exhibit 1) is $63,335,696, based upon an adjustment factor of 18.92% over the Revised 1999-2000 Limit. The Preliminary 2000-2001 Budget (including the recommended Higher Service Levels) includes appropriations subject to the Limit totaling $21,226,010 that would be categorized as "Proceeds of Taxes"..Therefore, the appropriations subject to the Appropriations Limit are below the allowed amount by $42,109,686. Although the City is well below its allowed Limit, it is important to make revisions in a timely manner. For record keeping purposes, the Limit carries forward each Fiscal Year, and having an accurate base simplifies the calculation for the following 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 (Exhibit 1) which will adopt an Appropriations Limit for 2000-2001. RECOMMENDATION Staffrecommends that the City Council adopt the attached Resolution. RESOLUTION NO. - 00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2000-2001 OF $63,335,696 WHEREAS, State law requires that an Appropriations Limit be adopted by the City Council in conjunction with the Annual Budget process; and WHEREAS, Article XIII B of the California Constitution places certain restrictions on appropriations 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 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 2000-2001 Appropriations Limit used the following discretionary factors: (1) the Growth in the City Population and (2) the change in the assessed valuation of local non-residential construction; and WHEREAS, the calculation of the Appropriations Limit for 2000-2001 is described in Exhibit A, 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 Appropriations Limit for Fiscal Year 2000-2001 of $63,335,696. BE IT FURTItER RESOLVED that the limit has been calculated in accordance with State Law and is shown in Exhibit A, attached hereto. PASSED, APPROVED AND ADOPTED this 21st day of June,2000. AYES: NOES: ABSENT: ATTEST: Mayor City Clerk CALCULATION OF FISCAL YEAR 2000-2001 APPROPRIATIONS LIMIT (Based On Revised Fiscal Year 2000-2001 Limit) A. SELECTION OF OPTIONAL FACTORS Population - City vs. County 01/01/1999 01/01/2000 (% Decrease) % Increase OR City of Dublin Alameda County 27,355 31,003 13.336% 1,434,162 1,449,604 1.077% 2. State Income vs. City Non-Residential Building OR Change in State Per Capita Income = 4.910% Change in Non-Residential Assessed. Valuation = 4.925%* Based on preliminary tax roll information available from the Alameda County Assessor ay 8,2000. The final tax roll figure may be different. ) CALCULATION OF GROWTH 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 2000-2001 Appropriations Limit Adjustment Factor 13,336+100 = 1.13336 100 4.925+100 = 1.04925 lO0 1.13336 x 1.04925 = 1.1892 = 2000-2001 Adjustment Factor CALCULATION OF APPROPRIATIONS LIMIT Fiscal Year 1999-2000 Revised Appropriations Limit = Fiscal Year 2000-2001 Adjustment Factor $ 53,259,078 x 1.1892