HomeMy WebLinkAboutItem III Appropriations FY 2010-2011G~~~ OF DU~~'G
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STAFF REPORT
DUBLIN CITY COUNCIL
CITY CLERK
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DATE: June 22, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJE : Adoption of an Appropriations Limit For Fiscal Year 2010-2011
Prepared By: Vivian Gong, Finance Manager and Paul S. Rankin,
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 2010-2011 Appropriations Limit is
calculated by multiplying the adopted Limit for the prior year by a set of factors to create a new
limit. Because certain factors used in the calculation are negative, the Appropriations Limit for
Fiscal Year 2010-2011 will be lower than the previous year, however, appropriations subject to
the Limit will be significantly below the maximum.
FINANCIAL IMPACT:
The proposed Limit for Fiscal Year 2010-2011 is $180,508,969 and only $35,748,468 in
Appropriations for Fiscal Year 2010-2011 are subject to this Limit.
RECOMMENDATION:
Adopt the Resolution adopting an Appropriation Limit for Fiscal Year 2010-2011 of
$180,508,969.
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Submitted By
Finance Manager
DESCRIPTION:
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Page 1 of 2 ITEM NO. .
ate Law to adopt an Appropriations
The Fiscal Year 2010-2011 Approp
for the prior year by factors refle
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 the posting of the proposed calculation 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.
2010-2011 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2010-2011 in
accordance with State Law and with the Uniform Guidelines of the League of California Cities.
The discretionary factors selected in calculating the 2010-2011 Limit are: (1) the change in the
City population; and (2) change in State Per Capita Income. This factor was a negative -2.54%
for the year but it is less than the alternative selection criteria.
The new 2010-2011 Appropriations Limit as calculated and attached to the proposed
Resolution is $180,508,969, based upon a negative adjustment factor of -0.0078% (1.0 -
0.9922) which is applied to the 2009-2010 Limit. The Preliminary 2010-2011 Budget includes
appropriations subject to the Limit totaling $35,748,468 that would be categorized as "Proceeds
of Taxes". Therefore, the appropriations subject to the Appropriations Limit are below the
allowed amount by $144,760,501.
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; an accurate
base simplifies the calculation for the following 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 2010-2011.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Factors used in Calculating the Limit were posted in three locations and the information was
also contained in the Fiscal Year 2010-2011 Preliminary Budget and Financial Plan.
ATTACHMENTS: 1. Resolution Adopting an Appropriations ~imit For Fiscal Year
2010-2011 of $180,508,969
Page 2 of 2
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
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ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2010-2011 OF $180,508,969
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 are defined as
"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, the City must select between the following factors: (A) the change in City
population, or (B) Countywide population, and either: (1) the change in the State per capita
income, or, (2) the change in the assessed valuation of local non-residential construction; and
WHEREAS, the 2010-2011 Appropriations Limit used the following discretionary factors:
(1) the change in the City population and (2) change in State Per Capita Personal Income; and
WHEREAS, the calculation of the Appropriations Limit for 2010-2011 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 City of Dublin Appropriations Limit for Fiscal Year 2010-2011 of $180,508,969.
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 22nd day of June, 2010.
AYES:
NOES:
ABSENT:
ATTEST:
Mayor
City Clerk
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ATTACHMENT 1
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EXHIBIT A
Calculation of Fiscal Year 2010 - 2011 Appropriations Limit
(Based on Fiscal Year 2009 - 2010 Limit)
A. Selection of Optional Factors
1. Chanqe in Population - Citv vs. Countv.
Factors 1 /1 /2009 1 /1 /2010 %
Increase
a. City of Dublin 47,953 48,821 1.810%
b. Count of Alameda 1,557,749 1,574,857 1.098%
The City selected Factor 1a. City of Dublin population growth 1.810%
2. Change in State per Capita Personal Income vs. City Non Residential Building
Construction.
Factors % Chan e
a. Chan e in State per Capita Personal Income -2.54%
b. Chan e in Non Residential Assessed Valuation* -94%
The City selected Factor 2a. Change in State per Capita Personal Income -2.54%
''Based on Preliminary tax roll information available from the Alameda County Assessor as of May 4, 2010.
The final tax roll figure may be different.
B. FY2010-2011 Growth Adiustment Factor
The formula for calculating the adjustment is as follows:
Selected Factor 1+ 100 = X
Selected Factor 2+ 100 = Y
(X) *(Y) = Fiscal Year 2010 -2011 Appropriations Limit Adjustment Factor
Calculation of factor for FY2010-2011 = X* Y= 1.0181 *0.9746=0.9922
X= Selected Factor #1 + 100 = 1.810+100 = 1.0181
100 100
Y= Selected Factor #2 + 100 =-2.54+100 = 0.9746
100 100
Adjustment Factor for Fiscal Year 2010-2011 : 1.0181 x 0.9746 =.09922
C. Calculation of Appropriations Limit
Fiscal Year 2009-2010 Appropriations Limit $181,928,007
Fiscal Year 2010-2011 Adjustment Factor x 0.9922
Fiscal Year 2010-2011 Appropriations Limit $180,508,969
Exhibit A