HomeMy WebLinkAboutItem 4.09 - 2000 Appropriations Limit for Fiscal Year 2018-1
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STAFF REPORT
CITY COUNCIL
DATE: May 15, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Adoption of an Appropriations Limit for Fiscal Year 2018 -19
Prepared by: Lisa Hisatomi, Assistant Administrative Services Director/Budget
EXECUTIVE SUMMARY:
The City Council will consider adoption of the annual Appropriations Limit (Limit) in
accordance with State law. The City of Dublin's Limit for Fiscal Year 2018 -19 is
$341,825,370, which exceeds the City's related appropriations by $276,902,466.
STAFF RECOMMENDATION:
Adopt the Resolution Adopting an Appropriations Limit for Fiscal Year 2018-19 of
$341,825,370.
FINANCIAL IMPACT:
None.
DESCRIPTION:
Each year the City Council is required by St ate law to adopt an Appropriations Limit
(Limit), also known as the Gann Limit or Proposition 4 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.
The laws regulating the application of the Limit forbid an agency from appropriating
specific funds that would exceed the Limit. The restriction applies to monies
categorized as “Proceeds of Taxes.” The Limit carries forwar d each year and is subject
to an adjustment in accordance with a specified formula that includes 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.
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2018-19 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2018 -19
in accordance with State law and with the Uniform Guidelines of the League of
California Cities. The discretionary factors selected in calculating the 2018 -19 Limit are:
(1) the change in the City population; and (2) Change in non -residential assessed
valuation.
The Fiscal Year 2018-19 Limit as calculated and attached to the proposed Resolution is
$341,825,370, based upon an increase of 1.0865% applied to the 2017-18 Limit. The
Proposed Fiscal Year 2018-19 Budget includes appropriations subject to the Limit
totaling $64,922,904 that would be categorized as “Proceeds of Taxes”. Therefore, the
appropriations subject to the Appropriations Limit are below the allowed amount by
$276,902,466.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
On April 30, 2018 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 Proposed Budget for Fiscal
Year 2018-19 and 2019-20.
ATTACHMENTS:
1. Resolution Adopting an Appropriations Limit for Fiscal Year 2018-19
ATTACHMENT 1
RESOLUTION NO. xx-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018-19
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 non-
residential construction; and
WHEREAS, the calculation of the Appropriations Limit for Fiscal Year 2018-19 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 2018-19 City of Dublin Appropriations Limit as $341,825,370.
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 15th day of May, 2018.
AYES:
NOES:
ABSENT:
________________________________
ATTEST: Mayor
_____________________________
City Clerk
EXHIBIT A
CALCULATION OF FISCAL YEAR 2018-19 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2017-18 Limit)
A. Selection of Optional Factors
1. Change in Population – City vs. County.
Factors 1/1/2018 1/1/2017 % Change
a. City of Dublin 61,514 58,777 4.66%
b. County of Alameda 1,656,996 1,643,219 0.84%
The City selected Factor 1a. City of Dublin population growth 4.66%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Change
a. Change in State per Capita Personal Income 3.67%
b. Change in Non Residential Assessed Valuation 3.81%
The City selected Factor 2b. Change in Non Residential Assessed Valuation 3.81%
B. FY2018-19 Growth Adjustment Factor
Calculation of factor for FY2018-19 = X*Y = 1.0466*1.0381 = 1.0865
X = Selected Factor #1 + 100 = 4.66+100 = 1.0466
100 100
Y = Selected Factor #2 + 100 = 3.81+100 = 1.0381
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2017-18 Appropriations Limit $314,611,477
Fiscal Year 2018-19 Adjustment Factor x ___ 1.0865
Fiscal Year 2018-19 Appropriations Limit $341,825,370