HomeMy WebLinkAbout8.2 ApproLim FY2003-04 CITY CLERK
File # 330-20
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 24, 2003
SUBJECT: Adoption of an Appropriations Limit for Fiscal Year 2003-2004
(Prepared by: Carole A. Perry, Administrative Services Director
and Fred W. Marsh, Finance Manager)
ATTACHMENTS: 1. Resolution
2. Calculation of Fiscal Year 2003-2004 Appropriations Limit
RECOMMENDATION: \~A/~. Approve the selected factors used to calculate the 2003-2004 Limit
and adopt the Resolution.
FINANCIAL STATEMENT: The proposed Limit for Fiscal Year 2003-2004 is $100,151,354 and
only $28,810,128 in Appropriations for Fiscal Year 2003-2004 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 2003-2004 Appropriations Limit is calculated by
multiplying the adopted Limit 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
choose 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:XBudgetV~ppropriation Limit\FY 2003-2004L~.pprop Limit FY03-04 Agenda Rpt. DOC ITEM NO. __~
2003-2004 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2003-2004 in accordance
with State Law and with the Uniform Guidelines of the League of California Cities. The discretionary
factors selected in calculating the 2003-2004 Limit are: (1) the change in the City Population; and (2)
change in State per capita income;. The data from the County 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 revision to thc calculated Limit. Staff will
evaluate the desirability of amending the Limit in conjunction with the adoption of the Limit next year.
The new 2003-2004 Appropriations Limit as calculated on Attachment 2 of the Proposed Resolution
(Attachment 1) is $100,151,354, based upon an adjustment factor of 8.87% over the Revised 2002-2003
Limit. The Preliminary 2003-2004 Budget (including the recommended Higher Service Levels) includes
appropriations subject to the Limit totaling $28,810,128 that would be categorized as "Proceeds of
Taxes". Therefore, thc appropriations subject to the Appropriations Limit are below the allowed amount
by $71,341,226.
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; 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 (Attachment 1) that will adopt
an Appropriations Limit for 2003-2004.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
RESOLUTION NO. - 03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2003-2004 OF $100,1~1~3~4
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 2003-2004 Appropriations Limit used the following discretionary factors: (1) the
Growth in the City Population and (2) the Change in State per capita income; and
WHEREAS, the calculation of the Appropriations Limit for 2003-2004 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 Appropriations Limit for Fiscal Year 2003-2004 of $100,151,354.
BE IT FURTHER RESOLVED that the limit has been calculated in accordance with State Law
and is shown in 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-approplimit03-04.doc (Item 8.2)
ATTACHMENT 1
CALCULATION OF FISCAL YEAR 2003-2004
APPROPRIATIONS LIMIT
(Based On Revised Fiscal Year 2002-03 Limit)
A. SELECTION OF OPTIONAL FACTORS
1. Population - City vs. County
(% Decrease)
1/1/02 1/1/03 % Increase
City of Dublin 31,295 33,300 6.407%
OR
Alameda County 1,492,342 1,474,143 1.235%
2. State Income vs. City Non-Residential Buildinq
Change in State Per Capita Income - 2.310%
OR
Change in Non-Residential Assessed Valuation = 1.323%*
Based onpreliminary tax roll information available from the Alameda County Assessor
ay 5, 2003. The final tax roll figure may be different. )
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 (Y) = Fiscal Year 2003-2004 Appropriations Limit Adjustment Factor
6.407+100 = 1.06407
100
2.31+100 = 1.02310
100
1.06407 x 1.02310 = 1.0887 = 2003-2004 Adjustment Factor
C. CALCULATION OF APPROPRIATIONS LIMIT
Fiscal Year 2002-2003 Revised Appropriations Limit = $ 91,991,691
Fiscal Year 2003-2004 Adjustment Factor x 1.0887
ATTACHMENT 2