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Home My WebLink About09 FY 2013/14 APPROPRIATION LIMITAgenda Item 9 Reviewed AGENDA REPORT City Manager Finance Director MEETING DATE, JUNE 18, 2013 TO: JEFFREY C. PARKER, CITY MANAGEN NEW,, SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2013/2014 E 111 W, M, I WA 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 6, 2013. RECOMMENDATION: 1. Select the change in the California per Capita Personal Income as the price factor for adjusting the Fiscal Year 2013/2014 appropriations limit. 2. Adopt Resolution No. 13-51 setting the appropriation limit for Fiscal Year 2013/2014 at $72,944,017. FISCAL IMPACT: 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 June 18, 2013 Appropriation Limit for FY 2013/14 Page 2 Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years 1987/1988 through 2013/2014. 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 $72,944,017. 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 2013/2014 by $35,080,817. Pamela Arends-King Finance Director Attachment Exhibit A Worksheet #1 Worksheet #2 Worksheet #3 Worksheet #4 Worksheet #5 Resolution No. 13-51 Sean Tran Administrative Services Manager 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 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 Exhibit A City of Tustin Appropriations Limits Appropriations Limit for the Base Year Ending June 30, 1987: $14,249,831 (a) Per Capita P. Income (b) (a)x(b) City /County Current Population Calculation Change Factor Cumulative Amended Factor Limit 1.0347 1.0199 1.0553 1.0553 $ 15,037,847 1.0466 1.0579 1.1072 1.1684 $16,649,876 1.0519 1.0238 1.0769 1.2583 $17,930,838 1.0421 1.0435 1.0874 1.3683 $19,498,555 1.0414 1.0273 1.0698 1.4639 $20,860,143 0.9936 1.0615 1.0547 1.5440 $22,001,327 1.0272 1.0687 1.0978 1.6949 $24,152,367 1.0071 1.0415 1.0489 1.7778 $25,333,288 1.0472 1.0508 1.1004 1.9563 $27,876,693 1.0467 1.0373 1.0857 2.1240 $30,266,894 1.0467 1.0283 1.0763 2.2861 $32,576,913 1.0415 1.0337 1.0766 2.4612 $35,072,257 1.0453 1.0396 1.0867 2.6746 $38,112,807 1.0491 1.0401 1.0912 2.9185 $41,587,510 1.0782 1.0172 1.0967 3.2008 $45,610,895 0.9873 1.0143 1.0014 3.2053 $45,675,589 1.0231 1.0124 1.0358 3.3201 $47,310,156 1.0328 1.0090 1.0421 3.4598 $49,301,686 1.0526 1.0113 1.0645 3.6829 $52,481,368 1.0396 1.0163 1.0565 3.8912 $55,448,952 1.0442 1.0110 1.0557 4.1079 $58,536,694 1.0429 1.0258 1.0698 4.3946 $62,622,954 1.0062 1.0147 1.0210 4.4869 $63,937,481 0.9746 1.0139 0.9881 4.4337 $63,179,627 1.0251 1.0039 1.0291 4.5627 $65,018,020 1.0377 1.0105 1.0486 4.7845 $68,177,626 1.0512 1.0178 1.0699 5.1189 $72,944,017 13 -14 Factors as reported by the State Department of Finance Per Capita Personal Income change over Prior Year: 5.12% Population Change: City of Tustin: 1.78% Orange County: 0.78% Worksheet #1 User Fees Versus Cost Fiscal Year 2O13/14 Based on2O13-l4 Budget Projections Program 'Recreation Fees Expenses Difference Tax/(non-Tax) Park;—& Services -;i-dministration: 561,700 13,500 561,700 -548,200 Sports: 913'485 4449-Sports Fees 170'000 4720-Sports Fee-Youth 73'000 4721-Sports Fee-Tennis 40'000 283,000 913,485 -630,485 . C/oysas� 494'O5O 4450-Classes/Cultural Arts 285'400 4711-bay Camp 120'000 405,400 494,050 -88,650 Senior Programs: 433'455 4452-Senior Classes 49'500 49,500 433,455 -383,9�_5 Support Services: 245'825 4713-CT Gym Rentals O 0 245,825 -245,825 Tustin Youth Center: 331'110 3663-Park and Building Runfo|y 144.500 144,500 331,110 -186,610 Total 895'900 2'979'625 -2'083.725 8n1/2013 Page of 1 w -a 0 :t 0 O Z LL- CL tn -a CA) 0 L- 'o d :* c: or 0 Z (y) -0 0 E- 0- 00000 00000 C\j �o Lo C\ t-, CO LC) OD P� Lo 460, A4 Id+ O LO 41+ m 00 0 N N 4pp • 0 0 0 .619- Nr M ma 00 000000 00 4pr 0 0 0 0 0 0 N 0 0 ";r 0 C\ LO 00 00 i t 00' 0\ .e7-. .1 G (Y) Lc) N (y) — N (\j N ,6-, ; .q- 40:)- 4pr .P, 4A. 4:pt 0 0 0 0 0 fPr CT 4A. x 4- O V w V) W 0 LL sn -C CA) :t tn 0- 0 V) V) :t t CW CA) ti) C U- C) .2 t —0 ` V) " 0- . , I 0- w x 0- +-0 %n 0. 0- 0- 0 U- 4- a- U- w t- I- N W 0- 4- + 0 0 c V) C: > a 0 n_C 0 cn 0 5 ;s c V) an At 0 +- W - C 0 W C CL 0- 14C LL z ot U- it f-4 :) CL �b (f) u Xx x 0 (\j cn -1- 0 x x x 0 x x C'i x x x x x x x x X m M m m CY) x x x 'o x x N X x x x x x C\j M (Y) CY) m x n 10 10 r- It X M X I c c c C\ C\ a • 001 O 00 0 0 O 0 0 VNJ LL O 0i co iFr a LL 0o cll� 0 C\j 4A 4- U- 0 0 10 U- ca a. �2 0 CN (D V) X 0 ti a_ co C\j x 0 0 CL .0 0 l"J 00 (A) 0 0 an CL ti U- 0 z 00 00 000000 00000 0 vt q q cl� - q o 10 0 0 cy) t� Lo 00 'A' Ap, C6 m C\j (\j C's CL +Pt NI +Pt 00000 00000 C\j �o Lo C\ t-, CO LC) OD P� Lo 460, A4 Id+ O LO 41+ m 00 0 N N 4pp • 0 0 0 .619- Nr M ma 00 000000 00 4pr 0 0 0 0 0 0 N 0 0 ";r 0 C\ LO 00 00 i t 00' 0\ .e7-. .1 G (Y) Lc) N (y) — N (\j N ,6-, ; .q- 40:)- 4pr .P, 4A. 4:pt 0 0 0 0 0 fPr CT 4A. x 4- O V w V) W 0 LL sn -C CA) :t tn 0- 0 V) V) :t t CW CA) ti) C U- C) .2 t —0 ` V) " 0- . , I 0- w x 0- +-0 %n 0. 0- 0- 0 U- 4- a- U- w t- I- N W 0- 4- + 0 0 c V) C: > a 0 n_C 0 cn 0 5 ;s c V) an At 0 +- W - C 0 W C CL 0- 14C LL z ot U- it f-4 :) CL �b (f) u Xx x 0 (\j cn -1- 0 x x x 0 x x C'i x x x x x x x x X m M m m CY) x x x 'o x x N X x x x x x C\j M (Y) CY) m x n 10 10 r- It X M X I c c c C\ C\ a • 001 O 00 0 0 O 0 0 VNJ LL O 0i co iFr a LL 0o cll� 0 C\j 4A 4- U- 0 0 10 U- ca a. �2 0 CN (D V � O o a > L N z L a N � M � V O M s' • ' A' m 0} N V O i x a � F- z C3 C3 C.9 O � M ..a N V O L 0. 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O cli to O X C,) (Y Z N 9: V) 0 x x a TA CA) m IW tUn fo www w XW 4- —0 0 Q L- W -C — +- Wa) W I- c o U- N x .2 + L. c Ia pq a. +- .2 o 0 -= , LL 0 -a G to C ( � CL U - -1 E w (,D LL w L = CA) .- V) 0 CA) V) 0 > 4 L- L' �n IW U o- C: V) V) W C C 0 4- 0 4- 4- cl &- in 0 o 0- U- x X 0 (\J M V- 0 X X 0 X X C\j x X X X X X X x m M m m m q- x x 'o x x r- X x x x x x M m (y) m m m m m m m m m v LO 10 cy) m m 10 N m m V" x 00 x X v X It V) O O LO 00 n O U- 0 0 N O U- 0 0 0 O jbpr U- ic) 1.44- U- 0� OD q- — Lo 4- a\ O N 10 4pr 10 160t (Y) — C) LO m 0 00 C\j 0 Z 00 00 N to C\j QJ C\j (\j O (3� {fl. CL CY) I- U- 'IT 0 0) (a a. O cli to Worksheet #3 Appropriations Subject to Limit Fiscal Year 2013 -14 Based on 2013 -14 Budget Projections Amount Source A. Proceeds of Taxes $37,863,200 From Work Sheet #2 B. Exclusions C. Appropriations Subject to Limit D. Current Year Limit E. Over /(Under) Limit M $37,863,200 (A -B) $72,944,017 From Work Sheet #5 ($35,080,817) (C -D) 6/11/2013 Page 1 of 1 Worksheet #4 Population Increase Fiscal Year 2013 -14 Based on 2013 -14 Budget Projections 6/11/2013 Page 1 of 1 County To Compute Limit to: City population Increase Population Increase 2000101 01/01/99 65,682 2,770,310 01/01/00 68,316 4.01% 2,828,400 2.10% 2001102 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 01101102 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% 2004105 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 01101109 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% 2011112 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 01101/12 76,567 1.05% 3,054,832 0.89% 2013/14 01/01/12 76,618 3,056,919 01/01/13 77,983 1.78% 3.080 859 n 7R0i 6/11/2013 Page 1 of 1 Worksheet #5 Appropriations Limit Fiscal Year 13-14 Based on 13-14 Budget Projections Amount Source A. Last Years Limit $68,177,626 From Exhibit A S. Adjustment Factors 1. Population 2. Price factor C. Annual Adjustments D. Other Adjustments: Sub Total E. Current Year Limit 1.0178 Dept of Finance 1.0512 Dept of Finance 1.0699 (BI-82) $4,766,391 (8-A) $0 $4,766,391 $72,944,017 (A-E) 6/1112013 Page 1 of 1 RESOLUTION NO. 13-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2013-2014 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, 2013; 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, 2013 through June, 2014 is $72,944,017. 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 18TH day of June, 2013. Resolution 13-51 Page 1 of 2 ELWYN A. MURRAY, Mayor JEFFREY C. PARKER, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN 1, Jeffrey C. Parker, 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. 13-51 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18TH day of June, 2013, by the following vote: JEFFREY C. PARKER, City Clerk Resolution 13-51 Page 2 of 2