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Home My WebLink AboutReso 99-05 Appropriations 05-06 RESOLUTION NO. 99 - 05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ***......~...**.***w******* ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2005-2006 OF $127,853,966 WHEREAS, State law requires that an Appropriations Limit be adopted by the City Council in conjunction with the Annual Budget process; and WHEREAS, Article XlII B ofthe 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 oflocal non-residential constroction; and WHEREAS, the 2005-2006 Appropriations Limit used the following discretionary factors: (1) the change in the City population and (2) change in State per capita income; and WHEREAS, the calculation of the Appropriations Limit for 2005-2006 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 2005-2006 of$127,853,966. 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 20th day of June, 2005. AYES: NOES: ABSENT: ABSTAIN: Councilmembers Hildenbrand, McCormick, Oravetz and Zika, and Mayor Lockhart None None None ~~:\4.u~ Deputy City Clerk O:\CC-MfOS\200S·qtr2lJun\06·2o-0j Budg""""" 99"()5 approp limit.d<x (hem 8.2) 7- 0;'-:;;<'''':; :~,,,. ) CALCULATION OF FISCAL YEAR 2005-2006 APPROPRIATIONS LIMIT (Based On Revised Fiscal Year 2004-2005 Limit) A. SELECTION OF OPTIONAL FACTORS 1. Population - City vs. County (% Decrease) 01/01/2004 01/01/2005 % Increase City of Dublin 36,174 37,852 4.640% QB Alameda County 1.493.441 1,503,926 0.702% Selected Factor #1 '" City of Dublin Population Growth 4.64% 2. State Income vs. City Non-Residential Buildino Change in State Per Capita Income Change in Non-Residential Assessed Valuation "'5.26% QE '" 1.5%" ""(Based onj2reliminary tax roll information available from the Alameda County Assessor May, 2005. The final tax roll figure may be different. ) Selected Factor #2 = Change in State Per Capita Income 5.26% B. CALCULATION OF GROWTH LIMIT ADJUSTMENT The formula for calculating the adjustment is as follows: Selected Factor 1 + 100 1UU '" x Selected Factor 2 + 100 1UU '" Y (X) x (Y) '" Fiscal Year 2.005-2006 Appropriations Limit Adjustment Factor 4.64+100 1UU '" 1.0464 5.26+100 1UU '" 1 . 0526 1 ,0464 x 1,0526 '" 1.1014 '" 2005-2006 Adjustment Factor C. CALCULATION OF APPROPRIATIONS LIMIT Fiscal Year 2004-2005 Revised Appropriations Limit '" Fiscal Year 2005-2006 Adjustment Factor Fiscal Year 2005-2006 Appropriations limit $116,083,136 x 1,1014 $127,853,966 2005-2006 - CITY OF DUBLIN APPROPRIATIONS LIMIT (Including a Revision to the Fiscal Year 2004-2005 Base) ,/" ':"',1 3 Cih",) In accordance with Chapter 1025 of the statutes of 1987, as amended, each government entity is required to include the Appropriations Limit in the annual budget. This limit may also be referred to as the Gann Limit or the Proposition 4 Limit. The City of Dublin has calculated a Fiscal Year 2005-2006 limit in accordance with Article XIII B of the California Constitution and the recognized methodology for calculating adjustments. The details of this calculation are shown on the following page. The Appropriations Limit does not apply to all funds appropriated by the City Council. The law only limits the appropriations that are funded by "proceeds of taxes." State law narrowly defines "proceeds of taxes." Interpretations from judicial rulings have also Influenced the methodology used to calculate the application of the Appropriation Limit. The formula used to calculate the limit provides the City with optional factors to be used In making any adjustment. The first option is based on changes in population. The City may either select the change in City of Dublin population or the change in the County Population. For Fiscal Year 2005-2006, the change in the City of Dublin population was larger on a percentage basis than the population growth in the County. The second option allows the City to use either the increase in the State per capita income or the change in local assessed valuation due to "non-residential construction." The approved formula for calculating the change in the assessed valuation compares the total change in assessed valuation to the amount related strictly to non~residential improvements. When the 2004-2005 Appropriations Limit was adopted by the City Council, final information related to the population for the City of Dublin and the amount of Non-Residential Assessed Valuation, both of which are used in the calculation of the Limit, was not ayailable. Now that the information is available, Staff has calculated a reyised Limit for Fiscal Year 2004-2005. The 2004-2005 Reyised Limit is $116,083,136 and only $30,343,322 in 2004-2005 Appropriations are subject to this limit. The factors selected for calculating the 2004-2005 Revised Limit were the change in City population and the change in State per capita income. In May 2005, the County Assessor proYided preliminary data related to Fiscal Year 2005-2006 changes in assessed valuation attributable to non~residential construction. Based upon the preliminary information available, this factor is lower than the growth in the State per capita income (1.5% versus 5.26% respectively). In the eyent that the final data from the Assessor suggests a material difference from the preliminary figures, Staff will propose the adoption of an adjustment once the information is available. The two factors for growth are combined to arrive at a growth rate for appropriations. This growth fate is factored with the Revised Appropriations Limit for 2004-2005 to arrive at a new limit for Fiscal Year 2005-2006. Based upon the data and the Reyised 2004-2005 Limit, the Fiscal Year 2005-2006 Appropriations Limit is $127,853,966 as shown on the following page. The recommended Preliminary Budget for Fiscal Year 2005-2006, including recommended higher service levels, contains appropriations of $34,363,583 that would be categorized as funded by proceeds of taxes. Therefore, the appropriations subject to the Appropriations Limit and contained in the recommended Preliminary Budget are $93,490,383 below the allowed amount calculated for Fiscal Year 2005-2006.