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HomeMy WebLinkAbout07 APPROP LIMIT 00-01 08-07-00 NO. 7 08-07-~_ · I n t e r- C o rn DATE' August 7, 2000 TO: FROM: SUBJECT: William A. Huston, City Manager Ronald A. Nault, Finance Director APPROPRIATION LIMIT FOR FISCAL YEAR 2000/2001 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 2000/2001 appropriation limit. 2. Adopt Resolution 00-56 setting the appropriation limit for Fiscal Year 2000/2001 at $41,587,229. 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 "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years 1989/90 through 2000/2001. Worksheets #1-7 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 #6 goes through the steps necessary to calculate the current limit of $41,587,229. Worksheet #4 carries forward the proceeds of taxes from Worksheet #2 and compares them with the current year's limit from Worksheet #6. The result shows the City of Tustin is below its allowable spending limit for Fiscal 2000/2001 by $13.5 million. Finance Director '- Chu Thai Senior Management Analyst Attachments BU DG:Appropnatlonl imit2OOOStaffRelx)rt, cloc 6 ? 9 10 11 12 15 16 19 2O 9.1 25 26 25 RESOLUTION NO. 00-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2000-2001 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, 2000; 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, 2000 through June, 2001 is $41,587,229. 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 7th day of August, 2000. ATTEST: Jeffery M. Thomas Mayor Pamela Stoker City Clerk EXHIBIT A City of Tustin Appropriation Limits Appropriations limit for base year ending June 30, 1987: $14,249,831 Fiscal Year 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 (a) (b) (a)x(b) Per Capita Current P. Income Population Calculation Change Change Factor 1.0347 1.0199 1.0553 1.0466 1.0579 1.107'2 1.0519 1.0238 1.0769 1.0421 1.0435 1.0874 1.0414 1.0273 1.0698 0.9936 1.0615 1.0547 1.0272 1.0687 1.0978 1.0071 1.0415 1.0489 1.0472 1.0508 1.1004 1.0467 1.0373 1.0857 1.0467 1.0283 1.0763 1.0415 1.0337 1.0766 1.0453 1.0396 1.0867 1.0491 1.0401 1.0912 Cumulative Factor Amended Limit 1.0553 1.1684 1.2583 1.3683 1.4639 1.5440 1.6949 1.7778 1.9563 2.1240 2.2861 2.4612 2.6746 2.9184 $15,037,712 $16,649,726 $17,930,677 $19,498,380 $20,859,956 $22,001,129 $24,152,150 $25,333,061 $27,876,443 -$30,266,623 $32,576,62O $35,071,942 $38,112,465 $41,587,229 00/01 Factors as reported by the State Department of Finance: Per Capita Personal Income Change over Prior Year: 4.91% Population Change: City of Tustin: 4.01% Orange County: 2.10% Appropriation Limits Page 1 of 11 WORKSHEET # 1 User Fees Versus Cost Fiscal Year 00/01 Based on Budget Projections for 00101 Program Fees Difference Expenses Tax/(Non-Tax), Parks and Recreation Services Administration: 4466 Non-Residential Fees Sports: 4449 Sports Fees - Adult 4468 Sports Park Concessions 4720 Sports Fees - Tennis 4721 Sports Fees - Youth 329,915 (329,915) 189,000 3,6O0 53,330 30,OOO 275,930 547,008 (271,078) Classes: 4450 Classes/Cultural Art Fee 4471 Day Camp Senior Programs: 4452 Sr Citizens/Classes 4712 Senior Center Rentals Support Services: 4713 CT Gym Rentals Tustin Youth Center: 4451 Youth Service Fees 4709 Newport Family Youth Ctr 232,500 50,880 283,380 370,786 (87,406) 66,750 9,000 75,750 294,861 (219,111) 7,5O0 7,500 229,496 (153,746) 233,568 (233,568) Total 642,560 $ 2,005,634 $ (1,363,074) Worksheet1 Page 2 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 00101 Based on Budget Projections for 00/01 Pac~e 114 II 01-General Fund /1' ' 02-C,P /I 03-SCAQMD /I 04-Asset Forfeiture Acct# Revenue SourceJl Proceeds Non-Proceed~l Proceeds Non-Proceed~Jl Proceeds Non-Proceed~l Proceeds Non-Proceeds 31xx Property Taxes 5.114.000 32xx Franchise Fees 1.133,500 Other Taxes: 3330 Sales 16.900,000 3331 TOT 140,000 3332 Business 260,000 3333 Real Property Tax 300,000 3334 New Construction 1,700 3336 Bldg Permits-E T 320.000 3337 Pin Ck Fees-E T 160.000 3338 New Construction Tx- E T 48,000 34xx License/Permits 360.800 35xx Fines/Forfeitures 583.500 Use of City Property 25,000 3771 POST Reimbursement 10,500 3772 Motor VLF 3.312,903 3773 Homeowners Prop Tx Relief 75.000 3775 State Mandated Reimb 60,000 3785 Asset Forfeitures 3881 State Grants 0 4115 Federal Grants 0 4117 County Grants 0 4118 RNSP Reimbursement 52.500 4119 AB 2766 SCAQMD Mtr Vh 4440 Finger Printing 5.300 4441 Planning Fees 72.000 4442 Subdivision Fees 5,500 4444 Sale of Plans/Maps 5,500 4449 Sports Fees 189.000 4450 Class Fees 232,500 4451 Youth Fees 0 4452 Senior Programs 66.750 4454 False Alarm Fees 17,700 4455 Special Police Services 43,000 4456 DUI Cost Recovery 3,000 4458 Witness Fees 1,900 4463 Jury Duty 100 4464 Fire Plan Check 6.500 4467 Police Security Services 15,000 4468 Sports Park Concession 3,600 4469 Court Liason Fees 15.000 4711 Day Camp 50.880 4712 Senior Center Rentals 9.000 4713 CT Gym Rental 7.500 4720 Sports Fees-Youth 53.330 4735 State Rev-Abandoned Veh 32.000 4721 Sports Fees-Tennis 30,000 4772 Sale of Unclaimed Property 5,000 4786 Recovery of Expense 6.000 48xx Transfers in 3.368,012 1,400.000 '4911 Fed-USDA Lunch Program 35,000 8466 Prop Tax Collection Fee (60,000) Misc 0 51,100 0 763,000 0 0 0 0 Subtotals 26.091.603 7,035,972 0 2,163,000 0 0 0 0 Interest by Fund: Combined Fund Total: 33.127,575 Sub Total: 2,163,000 Sub Total: 0 Sub Total: 0 210,000 300,000 25,000 15.000 33,337,575 Fund Total: 2,463,000 Fund Total: 25,000 Fund Total: 15.000 Worksheet2 Page 3 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99100 Based on 99100 Budget Requests Pacle 2/4 Il o~-~,~,~^u~m / 08-M:asure~-C [] 09-MeasureM-T ][ 2x-CDBG I Acct# Revenue Source Proceeds Non-Proceed~ Proceeds Non-Proceed~Jl Proceeds Non-Proceed~Jl Proceeds Non-Proceeds From Taxes: 31xx Property 3330 Sales 3331 TOT 3332 Business 3340 Prop 172-Sales Tax Augm 232,402 From State: 3771 POST Reimbursement 3772 Motor Vehicle In Lieu 3773 Homeowner Sub. 3881 State Grants 3884 SB 821 4119 SCAQMD 3785 Asset Forfeiture 3330 Pub. Safety Augment. 38xx Measure "M"-T/Comp. 832,472 39xx Gas Tax 2,226,084 Other From other Governments: 4333 CDBG 1,548,305 4334 MCAS Closure Other 3,451,845 Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Miscellaneous: 127,815 Sale of Property Interfund Transfers Subtotals 232,402 0 0 5,677,929 0 960,287 0 1,548,305 Interest by Fund: Sub Total: Fund Total: 232,402 Sub Total: 5,677,929 Sub Total: 960,287 Sub 1,548,: 4,000 27,000 81,000 0 236,402 Fund Total: 5,704,929 Fund Total: 1,041,287 Fund Total: 1,548,305 Worksheet2 Page 4 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99100 Based on 99~00 Budget Requests PaDe 3/4 II 10-GasTax ~1 11-ParkDev /I 16-Supp. Law Enforce. Il 30-95-1 Construction ] Acct# Revenue Source Proceeds Non-Proceed~l Proceeds Non-Proceed~l Proceeds Non-Proceed~Jl Proceeds Non-Proceeds From Taxes: 31xx Property 3330 Sales 3331 TOT 3332 Business 33xx Other From State: 3771 POST Reimbursement 3772 Motor Vehicle In Lieu 3773 Homeowner Sub. 3881 State Grants 3884 SB 821 4119 SCAQMD 3785 Asset Forfeiture 3330 Pub. Safety Augment. 38xx Measure "M"-T/Comp. 39xx Gas Tax 1,237,480 Other iFrom other Governments: 4333 CDBG 4334 MCAS Closure Other 1,400,000 149,000 Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other IMiscellaneous: 11,000 Sale of Property Interfund Transfers 548,000 Subtotal 0 2,637,480 0 559,000 0 149,000 0 0 Interest by Fund: Sub Total: Fund Total: 2,637,480 Sub Total: 559,000 Sub Total: 149,000 Sub Total: 0 150,000 240,000 6,000 228,000 2,787,480 Fund Total: 799,000 Fund Total: 155,000 Fund Total: 228,000 Worksheet2 Page 5 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99100 Based on 99~00 Budget Requests Pac)e 4/4 Acct# Revenue Source Proceeds Non-Proceed~l Proceeds Non-Proceed~ Proceeds Non-Proceed~l Proceeds Non-Proceeds From Taxes: 31xx Property 419,000 544,000 3330 Sales 3331 TOT 3332 Business 33xx Other From State: 3771 POST Reimbursement 3772 Motor Vehicle In Lieu 3773 Homeowner Sub. 3881 State Grants 3884 SB 821 4119 SCAQMD 3785 Asset Forfeiture 3330 Pub. Safety Augment. 38xx Measure "M"-T/Comp. 39xx Gas Tax Other From other Governments: 4333 CDBG 4334 MCAS Closure Other Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other 522,052 Miscellaneous: Sale of Property Interfund Transfers Subtotal 419,000 0 544,000 0 0 0 0 522,052 ................. r-,. · Ann C,..k T~I. ~ C~h Tnf=l' R'~'~ (~R~ Interest by Fund: Sub Total: Fund Total: 419,000 Sub Total: 544,000 Sub Total: 0 0 50,000 419,000 Fund Total: 544,000 Fund Total: 50,000 Fund Total: , 0 522,052 TOtal AIIInterest: $1,336,000 Subtotals: Interest: Grand Totals: proceeds Non-Proc. Total: 27,287,005 21,253,025 48,540,030 751,039 584;961 1,336,000 28,038,044 21,837,986 49,876,030 Worksheet2 Page 6 of 11 WORKSHEET #3 Interest Earnings Produced by Taxes Fiscal Year 00/01 Based on Budget Projections for 00/01 Amount Source A. Non-Interest Proceeds of Taxes $27,287,005 From worksheet # 2 B. Minus Exclusions $0 From worksheet # 7 C. Net Invested Taxes $27,287,005 (A-B) D. Total Non-Interest Proceeds and Non-Proceeds of Taxes $48,540,O3O From worksheet # 2 E. Tax Proceeds as % of Total proceeds F. Total Interest Earnings 56.22% $1,336,000 (C/D) From worksheet # 2 G. Amount of Interest Earned from taxes $751,039 (E'F) H. Amount of Interest Earned from non-taxes $584,961 (F-G) Worksheet3 Page 7 of 11 A. Proceeds of Taxes B. Exclusions C. Appropriations Subject to Limitation D. Current Year Limit E. Oved(Under) Limit WORKSHEET #4 Appropriations Subject to Limit Fiscal Year 00101 Based on Budget Projections for 00/01 Amount Source $28,038,044 From worksheet # 2 $0 From worksheet # 7 $28,038,044 $41,587,229 ($13,549,185) (A-B) From worksheet fl 6 (C-D) Worksheet4 Page 8 of 11 WORKSHEET #5 Population Increases Fiscal Year 00/01 Based on Budget Projections for 00/01 To Compute Limit To: City Population Increase 1994-95 01/01/1993 01/01/1994 52,818 55,012 4.15% County Population Increase 2,540,452 2,582,051 1.64% 1995-96: 01/01/1994 01/01/1995 55,053 57,849 5.08% 2,583,608 2,627,949 1.72% 1996-97: 01/01/1995 01/01/1996 56,821 58,94O 3.73% 2,583,745 2,610,959 1.05% 1997-98: 01/01/1996 01/01/1997 59,101 60,776 2.83% 2,618,920 2,646,967 1.07% 1998-99 01/01/1997 01/01/1998 61,216 63,276 3.37% 2,665,181 2,710,335 1.69% 1999-00 01/01/1998 01/01/1999 2000-01 01/01/1999 01/01/20OO 63,182 65,682 3.96% 65,682 68,316 4.01% 2,722,075 2,770,310 2,770,310 2,828,400 1.77% 2.10% Worksheet5 Page 9 of 11 WORKSHEET #6 Appropriations Limit Fiscal Year 00/01 Based on Budget Projections for 00/01 Amount Source A. Last Years Limit $38,112,465 From Exhibit A E~. Adjustment Factors 1. Population 2. Price Factor Total Adjustment 1.0401 Dept of Finance 1.0491 Dept of Finance 1.0912 (BI*B2) C. Annual Ajustment $3,474,764 (B'A) D. Other Adjustments: Sub Total $0 E. Total Adjustments $3,474,764 (C+D) F. Current Years Limit $41,587,229 (A+E) Worksheet6 Page 10 of 11 WORKSHEET #7 Excluded Appropriations Fiscal Year 00/01 Based on Budget Projections for 00/01 Categon/ Court Orders: Amount Subtotal $0 Federal Mandates: Subtotal $0 Qualified Capital Outlays: Subtotal $0 Qualified Debt Service: Subtotal $0 Total Excludable $0 Worksheet7 Page 11 of 11