HomeMy WebLinkAbout4.05 Appropriations Limit FY 2015-16 or
19 82 STAFF REPORT CITY CLERK
` CITY COUNCIL File #330-20
DATE: June 2, 2015
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager "
SUBJECT: Adoption of an Appropriations Limit for Fiscal Year 2015-1
Prepared by Lisa Hisatomi, Assistant Administrative Services Director
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 Limit for Fiscal Year 2015-16 is $270,028,591
and exceeds the appropriations which are subject to the Limit by $214,880,710, and the City is
in compliance with State Law.
FINANCIAL IMPACT:
The proposed Limit for Fiscal Year 2015-16 is $270,028,591 and only $55,147,881 of the total
City appropriations for Fiscal Year 2015-16 is subject to this Limit.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution Adopting an Appropriation Limit of
$270,028,591 for Fiscal Year 2015-16.
r
Submitted By \ Reviewed By
Administrative Services Director Assistant City Manager
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 Limit is calculated by multiplying the adopted
Limit from the prior year by factors reflecting economic changes over the prior year.
Page 1 of 2 ITEM NO. 4.5
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 posting the 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.
2015-16 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2015-16 in
accordance with State Law and with the Uniform Guidelines of the League of California Cities.
The discretionary factors selected in calculating the 2015-16 Limit are: (1) the change in the City
population; and (2) Change in State Per Capita income.
The new Fiscal Year 2015-16 Appropriations Limit, as calculated and attached to the proposed
Resolution, is $270,028,591, based upon an increased adjustment factor of 1.0926% applied to
the Fiscal Year 2014-15 Limit. The Proposed Fiscal Year 2015-16 Budget includes
appropriations subject to the Limit totaling $55,147,881 that would be categorized as "Proceeds
of Taxes". Therefore, the appropriations subject to the Appropriations Limit are below the
allowed amount by $21478807710.
Although the City's is well below its allowed Limit, it is important to make revisions in a timely
manner. The City must adopt the 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 2015-16.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
On May 18, 2015 a Public Notice was posted stating that the factors used in calculating the
Appropriations Limit were available for public review; the notice was also displayed on the City's
website; and the information was also contained in the Proposed Fiscal Year 2015-16 Budget
Update.
ATTACHMENTS: 1. Resolution Adopting an Appropriations Limit for Fiscal Year 2015-16
for $270,028,591
Page 2 of 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2015-16 OF $270,028,591
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 State per capita income;
and
WHEREAS, the calculation of the Appropriations Limit for Fiscal Year 2015-16 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 2015-16 City of Dublin Appropriations Limit as $270,028,591.
BE IT FURTHER 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 2nd day of June, 2015.
AYES-
NOES-
ABSENT-
ATTEST- Mayor
City Clerk
ATTACHMENT 1
EXHIBIT A
CALCULATION OF FISCAL YEAR 2015-16 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2014-15 Limit)
A. Selection of Optional Factors
1. Change in Population — City vs. County.
Factors 1/1/2014 1/1/2015 % Change
a. City of Dublin 51,614 54,316 5.24%
b. County of Alameda 1,571,371 1,591,732 1.30%
The City selected Factor 1a. City of Dublin population growth 5.24%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Change
a. Change in State per Capita Personal Income 3.82%
b. Change in Non Residential Assessed Valuation 0.77%
The City selected Factor 2a. Change in State per Capita Personal Income 3.82%
B. FY2015-16 Growth Adjustment Factor
Calculation of factor for FY2015-16 = X*Y = 1.0524*1.0382 = 1.0926
X = Selected Factor#1 + 100 = 5.24+100 = 1.0524
100 100
Y = Selected Factor#2 + 100 = 3.82+100 = 1.0382
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2014-15 Appropriations Limit $247,143,137
Fiscal Year 2015-16 Adjustment Factor x 1.0926
Fiscal Year 2014-15 Appropriations Limit $270,028,591
Exhibit A