HomeMy WebLinkAboutItem 4.05 Appropriations Limit FY 2016-17
STAFF REPORT CITY CLERK
File #330-20
CITY COUNCIL
DATE:June 7, 2016
TO:
Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Adoption of an Appropriations Limit for Fiscal Year 2016-17
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 Fiscal Year 2016-17 Limit is calculated by
multiplying the adopted Limit for the prior year by a set of factors to create a new limit. The Limit
for Fiscal Year 2016-17 is $291,414,855. The City’s Fiscal Year 2016-17 budget includes
appropriations subject to the Limit totaling $59,101,896, which is $232,312,959 below the limit,
and therefore in compliance with, the Limit.
FINANCIAL IMPACT:
None.
RECOMMENDATION:
Resolution
Staff recommends that the City Council adopt the Adopting an Appropriations Limit
for Fiscal Year 2016-17 of $291,414,855.
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 for the prior year by factors reflecting economic changes over the prior year.
Calculation of Appropriations Limit
The laws regulating the application of the Limit forbid an agency from appropriating specific
funds that would exceed the Limit. The restrictions apply 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.
ITEM NO. 4.5
Page 1 of 2
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.
2016-17 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2016-17 in
accordance with State Law and with the Uniform Guidelines of the League of California Cities.
The discretionary factors selected in calculating the Limit are: (1) the change in the City
population; and (2) Change in State Per Capita income.
The Fiscal Year 2016-17 Limit as calculated and attached to the proposed Resolution
(Attachment 1) is $291,414,855, based upon an increased adjustment factor of 1.0792%
applying to the 2015-16 Limit. The Proposed Fiscal Year 2016-17 budget includes
appropriations subject to the Limit totaling $59,101,896 that would be categorized as “Proceeds
of Taxes.” Therefore, the appropriations subject to the Appropriations Limit are below the
allowed amount by $232,312,959.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
On May 23, 2016, 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 is contained in the Proposed Budget for Fiscal Year 2016-17
and 2017-18.
ATTACHMENTS:
1. Resolution adopting an Appropriations Limit for Fiscal Year 2016-17
of $291,414,855
Page 2 of 2
RESOLUTION NO. ___-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 OF $291,414,855
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 2016-17 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 2016-17 City of Dublin Appropriations Limit as $291,414,855.
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 7 day of June, 2016.
AYES
:
NOES
:
ABSENT
:
________________________________
ATTEST
: Mayor
_____________________________
City Clerk
ATTACHMENT 1
EXHIBIT A
CALCULATION OF FISCAL YEAR 2016-17 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2015-16 Limit)
A. Selection of Optional Factors
1. Change in Population – City vs. County.
Factors 1/1/2016 1/1/2015 % Change
a. City of Dublin 55,804 54,486 2.42%
b. County of Alameda 1,624,841 1,607,863 1.06%
The City selected Factor 1a. City of Dublin population growth 2.42%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Change
a. Change in State per Capita Personal Income 5.37%
b. Change in Non Residential Assessed Valuation 1.17%
The City selected Factor 2a. Change in State per Capita Personal Income 5.37%
B. FY2016-17 Growth Adjustment Factor
1.0792
Calculation of factor for FY2016-17 = X*Y = 1.0242*1.0537 =
X = Selected Factor #1 + 100 = 2.42+100 = 1.0242
100 100
Y = Selected Factor #2 + 100 = 5.37+100 = 1.0537
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2015-16 Appropriations Limit $270,028,591
Fiscal Year 2016-17 Adjustment Factor x ___ 1.0792
$291,414,855
Fiscal Year 2016-17 Appropriations Limit
Exhibit A