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STAFF REPORT
CITY COUNCIL
DATE: May 16, 2017
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Adoption of an Appropriations Limit for Fiscal Year 2017 -18
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 2017 -18
Appropriations Limit is calculated by multiplying the adopted Limit for the prior year by a
set of factors to create a new limit. The Appropriations Limit for Fiscal Year 2017 -18 is
$314,611,477, which exceeds the appropriations which are subject to the Limit by
$253,067,043.
STAFF RECOMMENDATION:
Adopt the Resolution Adopting an Appropriation Limit for Fiscal Year 2017-18 of
$314,611,477.
FINANCIAL IMPACT:
The proposed Limit for Fiscal Year 2017-18 is $314,611,477 and only $61,544,434 of
the total City appropriations for Fiscal Year 2017-18 is 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, before the start of the new fiscal
year. 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 new Limit, also referred to as the
Gann Limit or Proposition 4 Limit, that shows the change from the prior year Limit. The
adjustment is made annually and is based o n a formula which may include the following
factors (the City has the discretion to choose one factor from each category below):
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1 Change in City population; or
2 Change in population for the entire County;
and
3 Change in State Per Capita income; or
4 Change in non-residential assessed valuation.
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2017 -18
in accordance with State Law and with the Uniform Guidelines of the League of
California Cities. The discretionary factors selected in calculating the 2017-18 Limit are:
(1) Change in the City population; and (2) Change in State Per Capita income.
The new Fiscal Year 2017-18 Appropriations Limit as calculated and attached to the
proposed Resolution is $314,611,477, based upon an i ncreased adjustment factor of
1.0796% applied to the 2016-17 Limit. The Fiscal Year 2017-18 Budget Update
includes appropriations subject to the Limit totaling $61,544,434 that would be
categorized as “Proceeds of Taxes”. Therefore, the appropriations su bject to the
Appropriations Limit are below the allowed amount by $253,067,043.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
On May 1, 2017, 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 website, and the information is contained in the Fiscal Year 2017 -18 Budget
Update.
ATTACHMENTS:
1. Resolution Adopting an Appropriations Limit for Fiscal Year 2017-18
ATTACHMENT 1
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2017-18 OF $314,611,477
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 2017-18 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 2017-18 City of Dublin Appropriations Limit as $314,611,477.
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 16th day of May, 2017.
AYES:
NOES:
ABSENT:
________________________________
ATTEST: Mayor
_____________________________
City Clerk
EXHIBIT A
CALCULATION OF FISCAL YEAR 2017-18 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2016-17 Limit)
A. Selection of Optional Factors
1. Change in Population – City vs. County.
Factors 1/1/2017 1/1/2016 % Change
a. City of Dublin 57,976 55,684 4.12%
b. County of Alameda 1,642,173 1,626,047 0.99%
The City selected Factor 1a. City of Dublin population growth 4.12%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Change
a. Change in State per Capita Personal Income 3.69%
b. Change in Non Residential Assessed Valuation 0.26%
The City selected Factor 2a. Change in State per Capita Personal Income 3.69%
B. FY2017-18 Growth Adjustment Factor
Calculation of factor for FY2017-18 = X*Y = 1.0412*1.0369 = 1.0796
X = Selected Factor #1 + 100 = 4.12+100 = 1.0412
100 100
Y = Selected Factor #2 + 100 = 3.69+100 = 1.0369
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2016-17 Appropriations Limit $291,414,855
Fiscal Year 2017-18 Adjustment Factor x ___ 1.0796
Fiscal Year 2017-18 Appropriations Limit $314,611,477