HomeMy WebLinkAbout22 APPROPRIATION LIMIT FY 2011/12AGENDA REPORT
MEETING DATE: JULY 19, 2011
Agenda Item 22
Reviewed:
City Manager _
Finance Director ~' ~`
~ _r_.
TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER
FROM: PAMELA ARENDS-KING, FINANCE DIRECTOR
SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2011/2012
SUMMARY:
Article XIII B of the State Constitution requires each City to annually adopt a limit on
appropriations for all governmental funds. The following recommendation and attached
worksheets are based on the Proposed Budget as presented to the City Council.
RECOMMENDATION:
1. Select the change in the California per Capita Personal Income as the price
factor for adjusting the Fiscal Year 2011/2012 appropriations limit.
2. Adopt Resolution No. 11-52 setting the appropriation limit for Fiscal Year
2011/2012 at $65,018,020.
FISCAL IMPACT:
None.
BACKGROUND:
Article XIII B of the State Constitution requires Cities to annually adopt a limit on
appropriations for governmental funds. The basis of this limitation is the relationship
between proceeds of tax and total appropriations. The base year was 1978/79, and the
limit is allowed to grow based on the annual increase in population and U. S. CPl /
California per Capita Personal Income, whichever is less.
Proposition 111 was approved by voters in 1990 changing the base year from 1978/79
to 1986/87 and amending the adjustment formulas to make the Appropriation Limit more
responsive to local growth patterns. It also required a review of the Limit calculation as
part of the annual audit process.
Page 2
Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years
1987/1988 through 2011/2012. Worksheets #1-5 go through the various calculations
that are required in conformance with the League of California Cities uniform guidelines
for calculating the annual appropriation limit. Worksheet #5 goes through the steps
necessary to calculate the current limit of $65,018,020. Worksheet #3 carries forward
the proceeds of taxes from Worksheet #2 and compares them with the current year's
limit from Worksheet #5. The result shows the City of Tustin is below its allowable
spending limit for Fiscal Year 2011/2012 by $11,893,699.
/ ~~~ ~G~.e~~a
Pamela Arends-King
Finance Director
Attachment
Exhibit A
Worksheet #1
Worksheet #2
Worksheet #3
Worksheet #4
Worksheet #5
Resolution No. 11-52
~~ ~~
Sean Tran y
Administrative Services Manager
Exhibit A
City of Tustin
Appropria tions Limits
Appropriations Limit for the Base Year Ending June 30, 1987: $14,249,831
(a) (b) (a)x(b)
Per Capita City/County Current
P. Income Population Calculation Cumulative Amended
Fiscal Year Change Change Factor Factor Limit
1987-88 1.0347 1.0199 1.0553 1.0553 $15,037,847
1988-89 1.0466 1.0579 1.1072 1.1684 $16,649,876
1989-90 1.0519 1.0238 1.0769 1.2583 $17,930,838
1990-91 1.0421 1.0435 1.0874 1.3683 $19,498,555
1991-92 1,0414 1.0273 1.0698 1.4639 $20,860,143
1992-93 0.9936 1.0615 1.0547 1.5440 $22,001,327
1993-94 1.0272 1.0687 1.0978 1.6949 $24,152,367
1994-95 1.0071 1.0415 1.0489 1.7778 $25,333,288
1995-96 1.0472 1.0508 1.1004 1.9563 $27,876,693
1996-97 1.0467 1.0373 1.0857 2.1240 $30,266,894
1997-98 1.0467 1.0283 1.0763 2.2861 $32,576,913
1998-99 1.0415 1.0337 1.0766 2.4612 $35,072,257
1999-00 1.0453 1.0396 1.0867 2.6746 $38,112,807
2000-01 1.0491 1.0401 1.0912 2.9185 $41,587,510
2001-02 1.0782 1.0172 1.0967 3.2008 $45,610,895
2002-03 0.9873 1.0143 1.0014 3.2053 $45,675,589
2003-04 1.0231 1.0124 1.0358 3.3201 $47,310,156
2004-05 1.0328 1.0090 1.0421 3.4598 $49,301,686
2005-06 1.0526 1.0113 1.0645 3.6829 $52,481,368
2006-07 1.0396 1.0163 1.0565 3.8912 $55,448,952
2007-08 1.0442 1.0110 1.0557 4.1079 $58,536,694
2008-09 1.0429 1.0258 1.0698 4.3946 $62,622,954
2009-10 1.0062 1.0147 1.0210 4.4869 $63,937,481
2010-i1 0.9746 1.0139 0.9881 4.4337 $63,179,627
2011-12 1.0251 1.0039 1.0291 4.5627 $65,018,020
11-12 Factors as reported by the State Department of Finance
Per Capita Personal Income change over Prior Year: 2.51%
Population Change:
City of Tustin: 0.39%
Orange County: 0.70%
Worksheet #1
User Fees Versus Cost
Fiscn) Year 2011/12
Based on 2011-12 Budget Projections
Difference
Program Fees Expenses Tax/(non-Tax)
Parks & Recreation Services
Administration: 610,700
4466-Non-Residential Fees 13,000
Sports:
4449-Sports Fees
4720-Sports Fee-Youth
4721-Sports Fee-Tennis
13,000 610,700 -597,700
912,000
170,000
72,000
45,000
Classes:
4450-Classes/Cultural Arts
4711-Day Cnmp
Senior Programs:
4452-Senior Classes
Support Services:
4713-CT Gym Rentals
287,000 912,000 -625,000
570,000
285,400
110,000
395,400 570,000 -174,600
380,300
46,000
46,000 380,300 -334,300
306,000
0
Tustin Youth Center:
3663-Park and Building Rentals
0 306,000 -306,000
324,800
131,500
131,500 324,800
Total 872,900 3,103,800
-193,300
-2,230,900
U:\Excel\Appropriation Limit Worksheet..xls: Worksheet #1 7/8/2011 Page 2 of 9
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Worksheet #3
Appropriations Subject to Limit
Fiscal Year 2011-12
Based on 2011-12 Budget Projections
A. Proceeds of Taxes
B. Exclusions
C. Appropriations Subject
to Limit.
Amount Source
34,391,455 From Work Sheet #2
$0
$34,391,455 (A-B)
D. Current Year Limit
E. Over/(Under) Limit
$65,018,020 From Work Sheet #5
($30,626,565) (C-D)
U:\ExcelWppropriation Limit Worksheet..xls: Worksheet #3 7/8/2011 Page 7 of 9
Worksheet #4
Population Increase
Fiscal Year 2011-12
Based on 2011-12 Budget Projections
County
To Compute Limit to: City population Incrense Population Increase
1998/99 01/01/97 61,216 2,665,181
01/01/98 63,276 3.37% 2,710,335 1.69%
1999/00 01/01/98 63,182 2,722,075
01/01/99 65,682 3.96% 2,770,335 1.77%
2000/01 01/01/99 65,682 2,770,310
01/O1/00 68,316 4.01% 2,828,400 2.10%
2001/02 O1/O1/00 68,029 2,864,827
O1/O1/Ol 69,199 1.72% 2,922,837 2.02%
2002/03 O1/O1/O1 68,102 2,878,578
01/01/02 69,078 1.43% 2,937,958 2.06%
2003/04 01/01/02 68,898 2,928,793
01/01/03 69,753 1.24% 2,977,151 1.65%
2004/05 01/01/03 69,712 2,973,732
01/01/04 70,339 0.90% 3,015,888 1.42%
2005/06 01/01/04 70,408 3,021,203
01/01/05 70,871 0.66% 3,055,493 1.13%
2006/07 01/01/05 70,617 3,045,682
01/01/06 71,767 1.63% 3,071,035 0.83%
2007/08 01/01/06 71,754 3,071,222
01/01/07 72,542 1.10% 3,097,008 0.84%
2008/09 01/01/07 72,348 3,088,594
01/01/08 74,218 2.58% 3,120,181 1.02%
2009/10 01/01/08 73,743 3,106,872
01/01/09 74,825 1.47% 3,138,438 1.02%
2010/11 01/01/09 74,736 3,134,276
O1/O1/10 75,773 1.39% 3,165,962 1.01%
2011/12 01/O1/10 75,488 3,008,356
O1/O1/11 75,781 0.39% 3,029,408 0.70%
U:\Excel\Appropriation Limit Worksheet..xls: Worksheet #4 7/8/2011 Page 8 of 9
Worksheet #5
Appropriations Limit
Fiscal Year 10-11
Based on 10-11 Budget Projections
Amount
Source
A. Last Years Limit
B. Adjustment Factors
1. Population
2. Price factor
C. Annual Adjustments
D. Other Adjustments:
Sub Total
E. Current Year Limit
$63,179,627 From Exhibit A
1.0039 Dept of Finance
1.0251 Dept of Finance
1.0291 (B1*B2)
$1,838,394 (B*A)
$0
$1,838,394 (C+D)
$65,018,020 (A+E)
U:\ExcelWppropriation Limit Worksheet..xls: Worksheet #5 7/8/2011 Page 9 of 9
RESOLUTION NO. 11-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING
AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
2011-2012 IN ACCORDANCE WITH ARTICLE XIII B OF
THE CONSTITUTION OF THE STATE OF CALIFORNIA,
AND SECTION 7910 OF THE GOVERNMENT CODE
The City Council of the City of Tustin does hereby resolve as follows:
WHEREAS, Article XIII B was added to the Constitution of the State of California
at a general election held November 6, 1989; and
WHEREAS, an annual appropriation limit must be determined for this City
effective for the fiscal year beginning July, 2011; and
WHEREAS, the appropriation limit must be adhered to in preparing and adopting
this City's Annual Budget;
NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve
and order as follows:
Section 1: In accordance with Article XIII B of the Constitution of the State of
California, and Section 7910 of the Government Code, and as set forth in detail in the
Attached Exhibit "A", that the appropriation limit for the fiscal year beginning July, 2011
through June, 2012 is $65,018,020.
Section 2: The appropriation limit shall not be exceeded in the adopted budget
or by any proposed amendment to the budget.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 19th day of July, 2011.
JERRY AMANTE,
Mayor
PAMELA STOKER,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council
of the City of Tustin is five; that the above and foregoing Resolution No. 11-52 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day
of July, 2011, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
City Clerk