HomeMy WebLinkAbout4.4 Adopt Appropriation Limits
STAFF REPORT CITY CLERK
File #330-20
CITY COUNCIL
DATE:May 20, 2014
TO:
Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Adoption of an Appropriations Limit for Fiscal Year 2014-15
Prepared by Vivian Gong, Finance Manager
EXECUTIVE SUMMARY:
Each year, the City Council is required by State Law to adopt an Appropriations Limit (Limit) in
conjunction with the annual budget process. The Fiscal Year 2014-15 Limit is calculated by
multiplying the adopted Limit for the prior year by a set of change factors to create a new Limit.
The Limit for Fiscal Year 2014-15 exceeds the appropriations which are subject to the Limit, by
a significant amount.
FINANCIAL IMPACT:
The proposed Limit for Fiscal Year 2014-15 is $247,143,137 and only $45,990,384 of the total
City appropriations for Fiscal Year 2014-15 is subject to this Limit.
RECOMMENDATION:
Resolution
Staff recommends that the City Council adopt a Adopting an Appropriation Limit for
Fiscal Year 2014-15 of $247,143,137.
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
DESCRIPTION:
Description of Appropriations Limit
The laws regulating the application of the Limit, as called the Gann Limit or Proposition 4 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 adoption process. The City has complied with this requirement, and has also posted the
ITEM NO. 4.4
Page 1 of 2
availability of the changes 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.
2014-15 Proposed Appropriations Limit
Staff has prepared the calculations (Exhibit A) necessary to adopt the Limit for Fiscal Year
2014-15 in accordance with State Law and with the Uniform Guidelines of the League of
California Cities. The discretionary factors selected in calculating the 2014-15 Limit are: (1) the
change in the City population; and (2) Change in Non-Residential assessed valuation.
The new Fiscal Year 2014-15 Appropriations Limit as calculated and attached to the proposed
Resolution is $247,143,137, based upon an increased adjustment factor of 1.0929% applied to
the Fiscal Year 2013-14 Limit. The proposed Fiscal Year 2014-15 Budget includes
appropriations subject to the Limit totaling $45,990,384 that would be categorized as “Proceeds
of Taxes.” Therefore, the appropriations subject to the Appropriations Limit are below the
allowed amount by $201,152,753.
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. 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 Fiscal
Year 2014-15.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
On May 5, 2014 a Public Notice was posted stating that the factors used in calculating the
Appropriations Limit were available for public review; the notice was displayed on the City
website; and the information was also contained in the Preliminary Budget and Financial Plan
for Fiscal Year 2014-15 and 2015-16.
ATTACHMENTS:
1. Resolution Adopting an Appropriations Limit for Fiscal Year 2014-15
of $247,143,137
Page 2 of 2
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2014-15 OF $247,143,137
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 meet the definition of
a "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
, for one of the adjustment factors the City must select between: (A) the
change in City population, or (B) Countywide population, and the City has selected the Change
in City population; and
WHEREAS
, for the second adjustment factor the City must select between: (1) the
change in the State per capita income, or, (2) the change in the assessed valuation of local non-
residential construction, and the City has selected the change in the assessed valuation of local
non-residential construction; and
WHEREAS
, the calculation of the Appropriations Limit for Fiscal Year 2014-15 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 Fiscal Year 2014-15 City of Dublin Appropriations Limit as $247,143,137.
BE IT FURTHER RESOLVED
that the limit has been calculated in accordance with State
Law and is shown in Exhibit A, attached hereto.
th
PASSED, APPROVED AND ADOPTED
this 20 day of May, 2014.
AYES
:
NOES
:
ABSENT
:
________________________________
ATTEST
: Mayor
_____________________________
City Clerk
ATTACHMENT 1
MENT 1
EXHIBIT A
CALCULATION OF FISCAL YEAR 2014-15 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2013-2014 Limit)
A. Selection of Optional Factors
1. Change in Population – City vs. County.
Factors 1/1/2014 1/1/2013 % Increase
a. City of Dublin 51,646 48,049 7.49%
b. County of Alameda 1,570,128 1,546,928 1.50%
The City selected Factor 1a. City of Dublin population growth 7.49%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Change
a. Change in State per Capita Personal Income -0.23%
b. Change in Non Residential Assessed Valuation 1.67%
The City selected Factor 2b. Change in Non Residential Assessed Valuation 1.67%
B. FY2014-2015 Growth Adjustment Factor
1.0929
Calculation of factor for FY2014-15 = X*Y = 1.0749*1.0167 =
X = Selected Factor #1 + 100 = 7.49+100 = 1.0749
100 100
Y = Selected Factor #2 + 100 = 1.67+100 = 1.0167
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2013-14 Appropriations Limit $226,135,179
1.0929
Fiscal Year 2014-15 Adjustment Factor x ___
Fiscal Year 2014-15 Appropriations Limit $247,143,137
Exhibit A