HomeMy WebLinkAbout17 APPRO. LIMIT 02-03 08-05-02AGENDA REPORT
NO. 17
08-05-02
330-50 ~
MEETING DATE: AUGUST 5, 2002 ~
TO:
FROM'
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULT, FINANCE DIRECTOR
APPROPRIATION LIMIT FOR FISCAL YEAR 2002/2003
SUMMARY:
Article XIIIB 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 Draft 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 2002/2003 appropriation limit.
2. Adopt Resolution 02-72 setting the appropriation limit for Fiscal Year 2002/2003 at
$45,895,395.
FISCAL IMPACT:
None.
DISCUSSION:
Article XIIIB 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. CPI/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.
Exhibit 'W' shows the calculation of the Appropriation Limit for each of the Fiscal Years 1987/1988
through 2002/2003. Worksheets #1-6 go through the various calculations that are required in
conformance with the League of California Cities uniform guidelines for calculating the annual
appropriations limit. Worksheet #5 goes through the steps necessary to calculate the current limit
of $45,895,395. 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 2002/2003 by $17.1 million.
Ronald A. Nault
Finance Director
Senior Management Analyst
Attachments
BU DG ET&CAFR:Appropriation LimitStaflP, eport2002.doc
RESOLUTION NO. 02-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
2002-2003 IN ACCORDANCE WITH ARTICLE XIIIB 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 XIIIB 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, 2002; 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 XIIIB 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, 2002 through June, 2003 is $45,895,395.
Section 2: The appropriation limit shall not be exceeded in the adopted budget nor
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 5th day of August, 2002.
ATTEST:
Jeffery M. Thomas
Mayor
Pamela Stoker
City Clerk
Exhibit A
City of Tustin
Appropriations Limits
Appropriations Limit for the Base Year Ending ,Tune 30, 1987:
(a) (b) (a)x(b)
Per Capita Current
P. Income Population Calculation . Cumulative
Fiscal Year Change Change Factor Factor
1987-88 1.0347 1.0199 1.0553 1.0553
1988-89 1.0466 1.0579 1.1072 1.1684
1989-90 1.0519 1.0238 1.0769 1.2583
1990-91 1.0421 1.0435 1.0874 1.3683
1991-92 1.0414 1.0273 1.0698 1.4639
1992-93 0.9936 1.0615 1.0547 1.5440
1993-94 1.0272 1.0687 1.0978 1.6949
1994-95 1.0071 1.0415 1.0489 1.7778
1995-96 1.0472 1.0508 1.1004 1.9563
1996-97 1.0467 1.0373 1.0857 2.1240
1997-98 1.0467 1.0283 1.0763 2.2801
1998-99 1.0415 1.0337 1.0766 2.4612
1999-00 1.0453 1.0396 1.0867 2.6746
2000-01 1.0491 1.0410 1.0921 2.9210
2001-02 1.0782 1.0172 1.0967 3.2036
2002-03 0.9873 1.0183 1.0054 3.2208
02-03 Factors as reported by the State Department of Finance
Per Capita Personal Income over Prior Year:
Population Change:
-1.27%
1.43%
$14,249,831
Amended
Limit
$15,037,847
$16,649,876
$17,930,838
$19,498,555
$20,860,143
$22,001,327
$24,152,367
$25,333,288
$27,876,693
$30,266,894
$32,576,913
$35,072,257
$38,112,807
$41,623,496
$45,650,362
$45,895,395
Per Cap Chg. 0.9873
Pop Chg. 1.0143
\\COT_PRlMARY~Budget0102fyV~ppropriation Limit Worksheet..xls: Sheet1
7~30~2002
Page 1 of 1
Worksheet #1
User Fees Versus Cost
Fiscal Year 02/03
Based on Budget Projections
Program
Parks & Recreation Services
Administration:
4466-Non-Residential Fees
Sports:
4449-Sports Fees
4468-Sports Park Concession
4720-Sports Fee-Tennis
4721-Sports Fee-Youth
Classes:
4450-Classes~Cultural Arts
4711-Day Camp
Senior Programs:
4452-Senior Classes
4712-Senior Center Rentasl
Support Services:
4713-CT Gym Rentals
Tustin Youth Center:
4451-Youth Service Fees
4709-Newport Family Youth Center
Fees
Difference
Expenses Tax/(non-Tax)
-11,345 345,123 -356,468
-11,345 345,123 -356,468
175,000
3,300
42,000
70,000
290,300 637,456 -347,156
280,000
80,000
360,000 396,619 -36,619
53,350
53,350 361,155 -307,805
0 234,365 -234,365
-213
231,887
-213 231,887 -232,100
Total 692,092 2,206,605 -1,514,513
U:\Excel~Appropriation Limit Worksheet..xls: Worksheet #1 7/30/2002 Page 1 of I
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Worksheet #3
Appropriations Subject to Limit
Fiscal Year 02-03
Based on 02-03 Budget Projections
Amount 5ource
A. Proceeds of Taxes
$28,866,668 From Work 5heet #2
B. Exclusions
$0
From Work Sheet #6
C. Appropriations 5ubject
to Limit.
$28,866,668 (A-B)
b. Current Year Limit
$45,895,395 From Work 5heet #5
E. Over/(Under) Limit
($17,028,727) (C-b)
U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #3 7/30/2002 Page 1 of 1
To Compute Limit to:
Worksheet ~
Population Increase
Fiscal Year 02-03
Based on 02-03 Budget Projections
City population Increase
County
Population
Tncrease
1994/95 01/01/93
01/01/94
52,818
55,012 4.15%
2,540,452
2,582,051
1.64%
1995/96 01/01/94
01/01/95
55,053
57,849 5.08%
2,583,608
2,627,949
1.72%
1996/97 01/01/95
01/01/96
56,821
58,940 3.73%
2,583,745
2,610,959
1.05%
1997/98 01/01/96
01/01/97
59,101
60,776 2.83%
2,618,920
2,646,967
1.07%
1998/99 01/01/97
01/01/98
61,216
63,276 3.37%
2,665,181
2,710,335
1.69%
1999/00 01/01/98
01/01/99
63,182
65,682 3.96%
2,722,075
2,770,335
1.77%
2000/01 01/01/99
01/01/00
65,682
68,316 4.01%
2,770,310
2,828,400
2.10%
2001/02 01/01/00
01/01/01
68,029
69,199 1.72%
2,864,827
2,922,837
2.02%
2002/03 01/01/01
01/01/02
68,102
69,078 1.43%
2,878,578
2,937,958
2.06%
U:\Excel~Appropriation Limit Worksheet..xls: WorkSheet #4 7/30~2002 Page 1 of 1
A. Last Years Limit
B.
Worksheet #5
Appropriations Limit
Fiscal Year 02-03
Based on 02-03 Budget Projections
Amount
5our'ce
AdJustment Factors
1. Population
2. Price factor
C. Annual AdJustments
b. Other Adjustments:
Sub Total
E. Current Year Limit
$45,650,362
1.0183
0.9873
1.0054
$245,032
$0
$245,032
$45,895,395
From Exhibit A
bept of Finance
bept of Finance
(BI*B2)
(B'A)
(C-b)
(A+E)
U:\ExcelV~ppropriation Limit Worksheet..xls: WorkSheet #5 7/30/2002 Page 1 of 1
Worksheet ~
Excluded Appropriations
Fiscal Year 02-03
Based on 02-03 Budget Projections
Category Amount
Court Orders:
Sub Total $0
Federal Mandates:
Sub Total - $0
C~ualified Capital Otlays:
Sub Total $0
O, ualified Dept Service:
Sub Total $0
Total Exclusions $0
U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet ~6 7/30/2002 Page 1 of 1