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Home My WebLink About14 APPROP LIMIT 99/00 07-19-99NO. 14.' 7-19-99 DATE: July 19, 1999 Inter-Corn TO: FROM' SUBJECT: William A. Huston, City Manager Ronald A. Nault, Finance Director APPROPRIATION LIMIT FOR FISCAL YEAR 1999/2000 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 1999/2000 appropriation limit. 2. Adopt Resolution 99-55 setting the appropriation limit for Fiscal Year 1999/2000 at $38,112,465. 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 issues. 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 1988/89 through 1999/2000. 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 $38,112,465. 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 1999/2000 by $16.8 million. RonaldA. Nault Finance Director Chu Thai Senior Management Analyst Attachments BU DG:AppropnationLirnit1999StaffReport.doc 1 5 6 ? 9 10 11 12 13 li 15 16 17 19 20 21 0.2 25 RESOLUTION NO. 99-55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 1999-2000 IN ACCORDANCE WITH ARTICLE XIIlB 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, 1999; 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 Califomia, 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, 1999 through June, 2000 is $38,112,465. 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 19th day of July, 1999. ATTEST: Tracy Wills Worley 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 (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 1.1072 1.0519 1.0238 1.0769 1.0421 1.0435 1.0874 1.0414 1.0273 1.0698 0.9936 1.061 5 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 1.041 5 1.0337 1.0766 1.0453 1.0396 1.0867 Cumulative Factor 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 Amended Limit $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 $32,576,620 $35,071,942 $38,112,465 99~00 Factors as reported by the state Department of Finance: Per Capita Personal Income Change over Prior Year: 4.53% Population Change: City of Tustin: 3.96% Orange County: 1.77% Appropriation' Limits Page 1 of 11 WORKSHEET # 1 User Fees Versus COst Fiscal Year 99/00 Based on Budget Projections for 99~00 Program Community Services: 7010-Admin 7020-Sports 7030-Classes 7050-Sr Prog. 7060-Special 7070-Tustin Youth Cb Difference Fees Expenses Tax/(Non-Tax) $0 $310,416 ($310,416) 189,000 $484,956 ($295,956) 211,000 $360,003 ($149,003) 88,000 $311,300 ($223,300) $0 $208,340 ($120,340) $0 $174,331 ($174,331) ,~88,000 $1,849,346 ($1,273,346) Worksheett Page 2 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99/00 Based on Bud~let Proiections for 99~00 Paqe 1/4 II 010-General Fund /1' '020-c,P /I 030-SCAQMD /I 040-Asset F(~rfei~t~r;' II Acct# Revenue Source Proceeds Non-Proceed~l Proceeds Non-ProceedS[ Proceeds Non-Proceed~l Proceeds Non-Proceeds 31xx Property Taxes 83,000 32xx Franchise Fees 0 Other Taxes: 3330 Sales 0 3331 TOT 16,635,000 3332 Business 120,000 3333 Real Property Tax 260,000 3334 New Construction 275,000 3336 Bldg Permits-ET 14,000 3337 Pin Ck Fees-E T 207,000 3338 New Construction Tx- E T 145,000 License/Permits 125,000 Fines/Forfeitures 146,000 Use of City Property 61,000 3771 POST Reimbursement 0 3772 Motor VLF 22,000 3773 Homeowners Prop Tx 2,959,000 3775 State Mandates 70,000 3785 Asset Forfeitures 45,000 3881 State Grants 0 4115 Federal Grants 0 4117 County Grants 4118 RNSP Reimbursement 0 4119 AB 2766 SCAQMD Mtr Vh 70,000 4440 Finger Printing 0 4441 Planning Fees 9,000 4442 Subdivision Fees 63,000 4444 Sale of Plans/Maps 8,000 4449 Sports Fees 0 4450 Class Fees 189,000 4451 Youth Fees 211,000 4452 Senior Programs 0 4454 False Alarm Fees 88,000 4455 Special Police Services 22,000 4456 DUI Cost Recovery 41,000 4458 Witness Fees 9,000 4463 Jury Duty 2,000 4464 Fire Plan Check 0 4467 Police Security Services 0 4468 Sports Park Concession 15,000 4469 Court Liason Fees 4,000 4735 State Rev-Abandoned Veh 150,000 474x Recovery-Traffic Sig Damg 50,000 4765 Seismic Revenue 180,000 47xx Transfers In 1,008,800 4770 Sale of City Property 0 4772 Sale of Unclaimed Property 0 4786 Recovery of Expense 0 4789 Developer Share/Projects 4911 Fed-USDA Lunch Program 0 4887 Nuisance Abatement 0 4885 PERS Credit 0 8466 Prop Tax Collection Fee (60,000) Misc 0 8,018,700 0 100,000 0 0 0 0 Subtotals 20,439,000 10,691,500 0 100,000 0 70,000 0 45,000 Interest by Fund: Combined 31,130,500 Sub Total: 100,000 Sub Total: 70,000 Sub Total: 45,000 120,000 300,000 10,000 30,000 Fund Total: 31,250,500 FUnd Total: 400,000 Fund Total: 80,000 Fund Total: 75,000 Worksheet2 Page 3 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99100 Based on 99~00 Bud~let Requests Paqe 2/4 ' II 045-Pub SafetyAugm ~1 060-M~AS Cl'osure ~1 080-CDBG '~1 090-Measure"M"T II Acct# Revenue Source Proceeds Non-Proceed~ll Proceeds Non-Proceed~l Proceeds Non-Proceed~ll Proceeds Non-Proceeds From Taxes: 31xx Property 3330 Sales 3331 TOT 3332 Business 33xx Other 191,000 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. 865,000 39xx Gas Tax Other From other Governments: 4333 CDBG 4334 MCAS Closure 243,000 Other Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Miscellaneous: 2,421,112 522,300 Sale of Property Interfund Transfers Subtotals 0 191,000 0 243,000 0 2,421,112 0 1,387,300 ............... ~ , ~ , , ~ ~ 4-,,.~., Interest by Fund: Sub Total: 191,000 Sub Total: 243,000 Sub Total: 2,421,112 Sub Total: 1,387,300 12,000 10,000 0 75,000 Fund Total: 203,000 Fund Total: 253,000 Fund Total: 2,42! ,112 Fund Total: 1,462,300 Worksheet2 Page 4 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99/00 Based o~ 99~00 Budget Requests Pac)e 3/4 II 095-Measure"M"C /I 100'-Gas T~x /I 110-Park Dev /I 430-95-1 Cons-truction I Acct# Revenue Source Proceeds Non-Proceed~]l Proceeds Non-Proceed~l Proceeds Non-Proceed~l 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. 4,209,645 39xx Gas Tax 1,238,500 Other From other Governments: 4333 CDBG 4334 MCAS Closure Other 1,734,842 Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other 0 Miscellaneous: 15,000 Sale of Property Interfund Transfers 45,000 Subtotal 0 5,944,487 0 1,238,500 0 60,000 0 0 Interest by Fund: Sub Total: 5,944,487 Sub Total: 1,238,500 Sub Total: 60,000 Sub Total: 0 0 150,000 90,000 150,000 Fund Total: 5,944,487 1,388,500 150,000 150,000 Worksheet2. Page 5 of 11 WORKSHEET #2 Calculation of Proceeds of Tax Fiscal Year 99~00 Based on 99~00 Budget Requests Pac)e 4/4 II 490-St Light Dist /I 530-Lanc~scape/[.ighting /I 850-Unemployment /I 048-Supp. Law-Enforce. II Acct# Revenue Source . Proceeds Non-Proceed~l Proceeds Non-Proceed~l Proceeds Non-Proceed~l Proceeds Non-Proceeds From Taxes: 31xx Property 407,000 411,000 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 150,000 Locally Raised: Special Benefit Assess. 34xx License & Permits 3332 Business License 32xx Frachise Fees 36xx Developer Fees 35xx Fines & Forfeitures User Fees Other 0 Miscellaneous: Sale of Property Interfund Transfers Subtotal 407,000 0 0 411,000 0 0 0 150,000 Interest by Fund: Sub Total: 407,000 Sub Total: 411,000 Sub Total: 0 Sub Tc ,, 7,5O0 Fund Total: 407,000 411,000 0 157,500 Grand Totals: TotalAIIInterest: Proceeds: qon Proceeds Total: $954,500 20,846,000 22,952,899 43,798,899 454,292 500,208 954,500 21,300,292 23,453,107 44,753,399 Worksheet2 Page 6 of 11 A. Non-Interest Proceeds of Taxes B. Minus Exclusions C. Net Invested Taxes D. Total Non-Interest Proceeds and Non-Proceeds of Taxes E. Tax Proceeds as % of Total Proceeds. F. Total Interest Earnings G. Amount of Interest Earned from Taxes. H. Amount of Interest Earned From Non-Taxes. WORKSHEET #3 Interest Earnings Produced by Taxes Fiscal Year 99/00 Based on Budget Projections for 99~00 Amount Source $20,846,000 From worksheet # 2 $0 From worksheet # 7 $20,846,000 (A-B) $43,798,899 From worksheet # 2 47.59% ' (C/D) $954,500 From worksheet # 2 $454,292 (E'F) $500,208 (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 ~ Appropriations Subject to Limit Fiscal Year 99~00 Based on Budget Projections for 99~00 Amount Source $21,300,292 $o From worksheet # 2 From worksheet # 7 $21,300,292 $38,112,465 ($16,812,172) (A-B) From worksheet # 6 (C-D) Worksheet4 Page 8 of 11 WORKSHEET #5 Population Increases Fiscal Year 99/00 Based on Budget Projections for 99~00 To Compute Limit To: City Population Increase County Population Increase 1994-95 1/1/93 52,818 2,540,452 1/1/94 55,012 4.15% 2,582,051 1.64% 1995-96: 1/1/94 55,053 1/1/95 57,849 5.08% 2,583,608 2,627,949 1.72% 1996-97: 1/1/95 56,821 1/1/96 58,940 3.73% 2,583,745 2,610,959 1.05% 1997-98: 1/1/96 59,101 1/1/97 60,776 2.83% 2,618,920 2,646,967 1.07% 1998-99 1/'1/97 61,216 1/1/98 63,276 3.37% 2,665,181 2,710,335 1.69% 1999-2000 1/1/98 63,182 1/1/99 65,682 3.96% 2,722,075 2,770,310 1.77% NOTE: The annual percentage change in population is net of exclusions for State mental institutions, Federal military bases and State prisons. Worksheet5 Page 9 of 11 A. Last Years Limit B. Adjustment Factors 1. Population 2. Price Factor Total Adjustment C. Annual Ajustment D. Other Adjustments: Sub Total E. Total Adjustments F. Current Years Limit WORKSHEET #6 Appropriations Limit Fiscal Year 97~98 Based on Budget Projections for 1997-98 Amount Source $35,071,942 From Exhibit A 1.0396 Dept of Finance 1.0453 Dept of Finance 1.08669 (BI*B2) $3,040,523 (B'A) $0 $3,040,523 (C+D) $38,112,465 (A+E) Worksheet6 Page 10 of 11 WORKSHEET #7 Excluded Appropriations Fiscal Year 99/00 Based on Budget Projections for 99/00 Category Amount Court Orders: Subtotal Federal Mandates: $0 Subtotal Qualified Capital Outlays: $0 Subtotal Qulified Debt Service: $0 Subtotal $0 Total Excludable $0 Worksheet7 Page 11 of 11