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Home My WebLink About8.1 RevApproLimFY02-03 CITY CLERK File # 330-20 · AGENDA STATEMENT CiTY COUNCIL MEETING DATE: June 24, 2003 SUBJECT: Adoption of a Revised Appropriations Limit for Fiscal Year 2002-2003 (Prepared by: Carole A. Perry, Administrative Services Director and Fred W. Marsh, Finance Manager) ATTACHMENTS: 1. Resolution 2. Revised Calculation of Fiscal Year 2002-2003 Appropriations Limit RECOMMENDATION: ,~q^~/ Approve the selected factors used to calculate the Revised 2002- 2003 Limit and adopt the Resolution. FINANCIAL STATEMENT: The proposed Revised Limit for Fiscal Year 2002-2003 is $91,991,691 and only $28,055,644 in appropriations for Fiscal Year 2002-2003 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 2002-2003 Limit was calculated and adopted by Resolution 112-02 on June 24, 2002. 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 2002-2003. 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: H:~Budget~ppropriation Limit\FY 2003-2004~Approp Limit REVISED FY02-03.DOC ITEM NO. ~ 2002-2003 Proposed Revised Appropriations Limit Staff has prepared the calculations necessary to adopt the Revised Limit for Fiscal Year 2002-2003 in accordance with State Law and with the Uniform Guidelines of the League of California Cities. The discretionary factors selected in calculating the 2002-2003 Revised Limit are: (1) the change in the City of Dublin Population, which represents the January 1, 2002 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 2001-2002 property tax roll. The Revised 2002-2003 Appropriations Limit, as calculated on Attachment 2 of the Proposed Resolution (Attachment 1) is $91,991,691, based upon a revised adjustment factor of 17.6% over the 2001-2002 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 2002-2003 that are subject to the Limit total $28,055,644 which is significantly below the allowed amount. Staff has prepared a Resolution (Attachment 1) that will adopt a Revised Appropriations Limit for 2002-2003. RECOMMENDATION Staff recommends that the City Council adopt the attached Resolution. RESOLUTION NO. - 03 / tY~~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A REVISED APPROPRIATIONS LIMIT FOR FISCAL YEAR 2002-2003 OF $91,991,691 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 112-02 establishing an Appropriations Limit for Fiscal Year 2002-2003; 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 WItEREAS, 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 2002-2003 Appropriations Limit used the following discretionary factors: (1) the Cn-owth in the City Population and (2) the change in the assessed valuation of local non- residential construction; and the calculation of the revised Appropriations Limit for 2002-2003 is described in the Attachment 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 2002-2003 of $91,991,691 BE IT FURTHER RESOLVED that the limit has been calculated in accordance with State Law and is shown in the Attachment. PASSED, APPROVED AND ADOPTED this 24th day of June, 2003. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk K2/G/6_24.03/reso-revisedapprop.doc (Item 8.1) ATTACHMENT 1 REVISED CALCULATION OF FISCAL YEAR 2002-2003 ~, ~¥,~ APPROPRIATIONS LIMIT (Based On Adopted Fiscal Year 2001-2002 Limit) A. SELECTION OF OPTIONAL FACTORS 1. Population - City vs. County (% Decrease) 01/01/2001 01/01/2002 % Increase City of Dublin 30,428 31,295 2.849% OR Alameda County 1,474,143 1,482,786 0.586% 2. State Income vs. City Non-Residential Buildinq Change in State Per Capita Income = (1.270%) OR Change in Non-Residential Assessed Valuation = 14.372% B. 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 2002-2003 Appropriations Limit Adjustment Factor 2.849+100 = 1.02849 (Originally was 1.10162) 100 14.372+100 : 1.14372 (Originally was 1.1036) 100 1.02849 x 1.14372 = 1.1763 = 2002-2003 Adjustment Factor (Originally was 1.2157) C. CALCULATION OF APPROPRIATIONS LIMIT Fiscal Year 2001-2002 Appropriations Limit = $ 78,204,277 Fiscal Year 2002-2003 Adjustment Factor x 1.1763 ATTACHMENT 2