HomeMy WebLinkAbout07 APPROPRIATION LIMITAGF,NDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
7
MEETING DATE:
JULY 3, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS-KING, FINANCE DIRECTOR
SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2012/2013
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 on
June 19, 2012.
RECOMMENDATION:
• Select the change in the California per Capita Personal Income as the price
factor for adjusting the Fiscal Year 2012/2013 appropriations limit.
2. Adopt Resolution No. 12-60 setting the appropriation limit for Fiscal Year
2012/2013 at $68,177,626.
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. 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.
City Council Agenda Report
July 3, 2012
Appropriation Limit for FY 2012/13
Page 2
Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years
1987/1988 through 2012/2013. 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 $68,177,626. 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 2012/2013 by $33,086,126.
/ PathetiArend
Finance Director
Attachment
Exhibit A
Worksheet #1
Worksheet #2
Worksheet #3
Worksheet #4
Worksheet #5
Resolution No. 12-60
Sean Tran
Administrative Services Manager
Exhibit A
City of Tustin
Appropriations 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 -11 0.9746 1.0139 0.9881 4.4337 $63,179,627
2011 -12 1.0251 1.0039 1.0291 4.5627 $65,018,020
2012 -13 1.0377 1.0105 1.0486 4.7845 $68,177,626
12 -13 Factors as reported by the State Department of Finance
Per Capita Personal Income change over Prior Year: 3.77%
Population Change:
City of Tustin: 1.05%
Orange County: 0.89%
Worksheet #1
User Fees Versus Cost
Fiscal Year 2012/13
Based on 2012 -13 Budget Projections
Program
Difference
Fees Expenses Tax /(non -Tax)
Parks & Recreation Services
Administration: 540,500
4466 - Non - Residential Fees 11,500
11,500 540,500 - 529,000
Sports: 892,100
4449 - Sports Fees 170,000
4720 - Sports Fee -Youth 73,000
4721 - Sports Fee- Tennis 45,000
288,000 892,100 - 604,100
Classes: 548,400
4450 - Classes /Cultural Arts 285,400
4711 -Day Camp 110,000
395,400 548,400 - 153,000
Senior Programs: 367,200
4452 - Senior Classes 49,500
49,500 367,200 - 317,700
Support Services: 304,500
4713 -CT Gym Rentals 0
0 304,500 - 304,500
Tustin Youth Center: 309,100
3663 -Park and Building Rentals 140,500
140,500 309,100 - 168,600
Total 884,900 2,961,800 - 2,076,900
6/27/2012 Page 2 of 9
Work Sheet #2
Proceeds of Tax
Calculation o
Fiscal Year 2012-13
Based on 2012-13 Budget Projections
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6/27/2012 Page 3 of 9
Work Sheet #2
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6/27/2012 Page 5 of 9
Work Sheet #2
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Worksheet #3
Appropriations Subject to Limit
Fiscal Year 2012-13
Based on 2012-13 Budget Projections
Amount Source
A. Proceeds of Taxes $35,091,500 From Work Sheet #2
B. Exclusions $0
C. Appropriations Subject to Limit $35,091,500 (A-B)
D. Current Year Limit $68,177,626 From Work Sheet #5
E. Over/(Under) Limit
($33,086,126) (C-D)
6/27/2012 Page 7 of 9
Worksheet #4
Population Increase
Fiscal Year 2012 -13
Based on 2012 -13 Budget Projections
County
To Compute Limit to: City population Increase Population
Increase
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 /01 /00 68,316 4.01% 2,828,400 2.107
2001/02 01 /01 /00 68,029 2,864,827
01 /01 /01 69,199 1.72% 2,922,837 2.02%
2002/03 01/01/01 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
01/01/10 75,773 1.39% 3,165,962 1.01%
2011/12 01 /01 /10 75,488 3,008,356
01 /01/11 75,781 0.39% 3,029,408 0.70%
2012/13 01/01/11 75,772 3,027,832
01/01/12 76,567 1.05% 3,054,832 0.89%
6/27/2012 Page 8 of 9
Worksheet #5
Appropriations Limit
Fiscal Year 12 -13
Based on 12 -13 Budget Projections
Amount Source
Last Years Limit
B. Adjustment Factors
1. Population
2. Price factor
C. Annual Adjustments
D. Other Adjustments:
Sub Total
Current Year Limit
$65,018,020 From Exhibit A
1.0105 Dept of Finance
1.0377 Dept of Finance
1.0486 (B1 *B2)
$3,159,606 (B *A)
$0
$3,159,606 (C +D)
$68,177,626 (A +E)
6/27/2012 Page 9 of 9
RESOLUTION NO. 12-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING
AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
2012-2013 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, 2012; 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, 2012
through June, 2013 is $68,177,626.
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 3rd day of July, 2012.
JOHN NIELSEN,
Mayor
PAMELA STOKER,
City Clerk
Resolution 12-60
Page 1 of 2
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. 12-60 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 3rd day
of July, 2012, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
City Clerk
Resolution 12-60
Page 2 of 2