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HomeMy WebLinkAboutItem 9.1 Appropriation Limits ." . Ii ..f' e - CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 26, 1990 SUBJECT: 1990-91 Appropriations Limit Report prepared by Phillip Molina, ,Finance Director EXHIBITS ATTACHED: Resolution RECOMMENDATION: ~oPt Resolution FINANCIAL STATEMENT: 1990-91 Appropriations Limit - $16,445,712 DESCRIPTION: In June, 1989, the City Council adopted Resolution No. 85-89 establishing the City's appropriations limit for Fiscal Year 1989-90 at $14,436,706. Each fiscal year, the City Council is required to adopt an appropriations limit. According to the legislation that initiated the appropriations limit requirements, the limit changes each year by the change in Dublin's population plus the lesser of the change in the U. S. Consumer Price Index (CPI), or the change in the state per capita personal income. The 1990-91 appropriations limit is calculated in a consistent manner as required by Article XIIIB of the California State Constitution, using the following factors: Chanqe in population Estimated population (1/1/89) 23,554 Estimated population (1/1/90) 25,825 Change = increase of 2,271 Change in percentages = 9.64% Chanqe in U. s. cpr = 3.9% Chanqe in state per capita income = 4.2% The appropriations limit qrowth rate formula 1.0964 x 1.039 = 1.391596 The City's appropriations limit base for Fiscal Year 1990-91 is calculated as follows: $14,436,706 x 1.1391596 = $16,445,712 This limit only restricts those appropriations which are funded by proceeds of taxes as defined by Article XIIIB of the state Constitution. The amount of Appropriations funded by proceeds of taxes for Fiscal Year 1990-91 is estimated to be $11,627,212. Therefore, the City will be $4,818,500 under its appropriations limit for Fiscal Year 1990-91. IMPACT OF PROPOSITION 111 With the passage of Proposition 111, the method for not only calculating the appropriations limit, but also those appropriations funded by proceeds of taxes was modified. For Fiscal Year 1990-91, the base year for determining a City's appropriations limit will be Fiscal Year 1986-87. This would be adjusted by: 1. a. Percentage change in California per capita personal income (old law); or b. Percentage change of growth in total assessed value due to non-residential construction (new law) ; and 2. a. Percentage change in City's population (old law); or b. Percentage change in population for entire county (new law) . Staff has contacted the Alameda County Assessor's Office, which indicated that the information regarding non-residential construction was not yet available. Staff has reviewed the County's population growth since 1986-87 and determined that it is not as great as the City's. With respect to appropriations subject to limitation, the City will be able to exclude certain capital costs in excess of $100,000. These exclusions do not affect the limit on the appropriations funded by proceeds of taxes. These exclusions have not been taken into consideration in the $11,627,212 identified above. RecomI:llendi!tJ on It is Staff's recommendation that the City Council adopt an appropriations limit which is calculated based on the provisions of the old law. Once information from the County Assessor's Office is made available and guidelines for implementation of Proposition 111 are made available by the League of California Cities, Staf~ will present a revised limit / calculation for Council consideration. ~ ::::-:~~-~~-jf---------------~~~~;~-;~~----------------------------~:?O~ \ '"'\ , .~ i/ e e RESOLUTION NO. 97 - 90 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN **************** ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 1990-91 WHEREAS, the voters of the State of California, in November, 1979, approved the addition of Article XIIIB to the California Constitution, popularly known as Proposition 4; and WHEREAS, Article XIIIB of the California Constitution places certain restrictions on appropriations made by cities in California beginning June 1, 1980; and WHEREAS, on November 24, 1981, the Alameda County Board of Supervisors adopted Resolution No. 092103 which established an appropriations limit of $5,361,000, effective February 1, 1982, for the newly incorporated City of Dublin; and WHEREAS, restrictions on City appropriations are based upon those appropriations funded by Proceeds of Taxes and adjusted by changes in the City's population plus the lesser of the change in the State Per Capita Personal Income or the U. S. CPl. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the City's Appropriations Limit for Fiscal Year 1990-91 of $16,445,712 which has been calculated in accordance with state law. PASSED, APPROVED AND ADOPTED this 26th day of June, 1990. AYES: Councilmembers Hegarty, Jeffery, Snyder, Vonheeder, and Mayor Moffatt. NOES: None. ABSENT: None. ABSTAIN: None. ATTEST: r7J f" / .-- 1\ / /- -ii < I~i (, \ .],{,,( -' I c ~ ..~ "_._ ilCi ty -Clerk