HomeMy WebLinkAbout09 APPROP LIMIT 98-99 08-03-98NO.9
8-3-98
DATE:
August 3, 1998
Inter-Com
TO:
FROM'
SUBJECT:
William A. Huston, City Manager
Ronald A. Nauit, Finance Director
APPROPRIATION LIMIT FOR FISCAL YEAR 1998-99
SUMMARY: Article XIIIB of the State constitution requires each City to annually adopt a limit II
on apprOpriations for all governmental funds. The following recommendation and' attached
w°i'ksheets 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 1998-99 appropriation limit.
2. Adopt Resolution 98-69 setting the appropriation limit for Fiscal Year 1998-99 at $35,071,942.
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 1987-88
through 1998-99. 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 $35,071,942. 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 1998-99 by $10.7 million.
Finance Director
RAN:ts
Attachments
BUDG:ApprOpriationUmit98-99.Agenda.doc
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RESOLUTION 98-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
~J9'98-99 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 XlIIB 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, 1998; 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 Tusti'n does
and order as follows:
hereby resolve
Section 1' In accordance with Article XIIIB of'the Constitution of the State of
Califomia, and Section 7910 of the Govemment Code, and as set forth in detail in
the Attached Exhibit "A", that the appropriation limit for the fiscal year beginning
July, 1998 through June, 1999 is $35,071,942.
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 3rf~... day of August, 1998.
Thomas R. Saitarelli
Mayor
A'i-I'EST:
Pamela Stoker
City Clerk
EXHIBIT A
City of Tustin
Appropriation Limits
Appropriations limit for base year ending June 30, 1987:
(a) (b) (a)x(b)
Per Capita Current
P. Income Population Calculation
Fiscal Year Change Change Factor
Cumulative
Factor
$14,249,831
Amended
Limit
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
1997298 1.0467 1.0283 1.0763 2.2861
1998-99 1.0415 1.0337. 1.0766 2.4612
$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
1998/99 Factors as reported by the State Department of Finance
Per Capita Personal Income Change over Prior Year: 4.15%
Population Change:
City of Tustin 3.37%
Orange County 1.07%
WORKSHEET # 1
User Fees Versus Cost
Fiscal Year 98/99
Based on 1998/99 Budget Requ. ests
Difference
Program
Community Services:
7010-Admin
7020-Spods '
7030-Classes
7050-Sr Prog.
7060-Special
7070--Newpod Ctr
Fees
Expenses Taxi(Non-Tax)
· $0 $298,939 ($298,939)
$236,750 $420,164 ($183,414)
$210,900 $335,077 ($124,177)
$68,400 $260,557 ($192,157)
$40,500' $187,098 ($146,598)
$0 $139,767 ($139,767)
$556,550
$1,641,602
($1,085,052)
WORKSHEET #2
Calculation of Proceeds of Tax
Fiscal Year 98/99
Based on 1998/99 Budget Requests Page 1/4
-- I 010-GeneralFund I 020-ClP i 030-SCAQMD ! 040-AsSet Forfeiture
Acct# Revenue Source Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds
t31xx Property Taxes $4,046,500
132xx Franchise Fees $1,131,600
Other Taxes:
3330 Sales $15,980,000
3331 Business $260,000
3332 TOT $100,000
i3333 Real Prop.Transfer $150,000
3334 New Construction $5,600
3336 Bldg Permits-E T $975,600
3337 Pin Ck Fees-E T $683,000
3338 New Construction Tx-E T $271,700
License/Permits $468,500
Fines/Fodeitures $680,600
3660 Interest
Use of City Property $54,500
3771 POST Reimbursement $5,000
3772 MVIL $2,704,000 ·
3773 Homeowners Prop T'x $50,000
Asset Forfeitures $50,000
State Mandates $45,000
3684 State Grants-SB821
3881 State Grants-Other $68,000
4115 Federal Grants
4118 RNSP Reimbursement $35,000
4117 County Grants $0
4440 Finger Pdnting $7,000
4441 Planning/Subdivision Fees . . $77,500
4444 Sale of Plans/Maps $10,000
4449 Sports Fees $168,100
4450 Class Fees $210,900
4451 Youth Fees SO
4452 Senior Programs $61,200
4454. False Alarm Fees $18,000
4455 Special Police Sen/ices $40,000
4456 DUI Cost Recovery $1,000
4458 Wilness Fees $2,400
4463 Jury Duty SO
4464 Fire Plan Check $2,000
4467 Police Secudty Services $12,000
4468 Sports Park Concession $9,000
4469 Court Uason Fees $15,000
4735 State Rev-.Abandoned Veh $5,000;
474x Recovery-Traffic Sig Damg $01
4765 Seismic Revenue $500
47xx Transfers In $2,601,341 $0
4770 Sale of City Property
47'~2 Sale of Unclaimed Property $5,000
4786 Recovery of Expense $10,000 $0
4789 Developer Sham/Projects $0
4911 Fed-USDA Lunch Program $22,000
4887 Nusance Abatement $0
4885 PERS Credit $0
8466 Prop Tax Collection Fee ($58,800) ,
Misc $0 $133,350 $0
Sub Total: $23,509,000 $7,490,091 $0 $0 $0 S68,000 $0 $50,000
Interest Eamings $0 SO
Total Revenue: $23,509,000 $7,490,091 SO $0 $0 S68,000 $0 $50,000
PROP4LIM.WK3
Interest by Fund:
Sub Total: $30,999,091 Sub Total: $0 Sub Total: $68,000 Sub Total: $50,000
$~0,000 $300,000 ~0,000 ~0,000
Fund Total: $31,239,091 Fund Total: · $300,000 Fund Total: 688,000 Fund Total: S100,000
WORKSHEET #2
Calculation of Proceeds of Tax
Fiscal Year 96/97
Based on Budget Projections for 1998/99
Ac. ct # Revenue Source
From Taxes:
31xx Property
3330 Sales
3331 TOT
3332 Business
33xx Other
From State:
3771 POST Reimbursement
3772 Motor Vehlcte In Ueu
3773 Homeowner Sub.
3881 State Grants
3884 SB 821
4119' SCAQMD
3785 Asset Fodelture
3,3.30 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
Miscellaneous:
Sale of Property
Interfund Transfers
Sub Total:
Interest Earnings
Total Revenue:
045-Pub Safety Augm
Proceeds Non-Proceeds
060-MCAS Closure
Proceeds Non-Proceeds
$251,70(
Interest by Fund:
$160,000
$0 $251,700
080-CDBG
Proceeds Non-Proceeds
$1,421,61.(
$0 $1,421,61§
Page 2/4
090-Measure "M' T
Proceeds Non-Proceeds
$6b"2,00(;
$629,491
$0 $1,291,491
Sub Total: $160,000 Sub Total: $251,700 ~ $1,421,619 ~ $1,291,491
$10,000 $5 000 $70 000
' ~ Fund Total: ~ Fund Total: ~
Fund Total: $170,000 Fund Total:
WORKSHEET #2
Calculation of Proceeds of Tax
Fiscal Year 96/97
Based on Budget Projections for 1998/99 Page 3/4
095-Measure "M' C 100-Gas Tax Il 110-Park Dev 200-Gewer
Acdt # Revenue Source Proceeds N, on-Proceeds Proceeds Non-ProceedsII Proceeds Non-Proceeds Proceeds Non-Proceeds
F rom Taxes: '.
31xx Property
3330 Sales
3.331 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. $11,680,917
39xx Gas Tax $1,198,500
Other
From other Governments:
4333 CDBG
·
4334 MCAS Closure
Other $5,500,000
locally Raised:
Special Benefit Assess.
34xx Ucense & Permits
3,332 Business Ucense
32xx. Frachise Fees
36xx Developer Fees
35xx Fines & Forfeitures
User Fees $6,500
Other
Miscellaneous: SCi
Sale of Property
Interfund Transfers $271,700
Sub Total: $0 $17,180,917 $0 $1,198,500 $0 $278,2001 $0 $0
Interest Earnings 2
Total Revenue: $0 $17,180,917 $0 $1,1'98,500 $0 $ 787200 $0 $0
Interest by Fund:
Sub Total: $17,180,917 Sub Total: $1,198,500 Sub Total: $278,200 Sub Total:
S0 $60,000 $200,000
Fund TotaJ: $17,180,917 $1,258,500 $478,200 $0
WORKSHEET #2
Calculation of Proceeds of Tax
Fiscal Year 96/97
Based on Budget Projections for 1998/99 Page 4/4
j' 4gO-St Light Dist I 530-Landscape/Lighbng' I 850-Unemployment I 046-Supp. Law Enforce.
Acct# Revenue Source Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds
From Taxes:
31xx Property $405,000
3330 Sales
3331 TOT
3332 Business
33xx Other
From State:
3771 POST Reimbursement
3772 Motor Vehicle In Lieu
3773 Homeowner Sub.
3881 State Grants $148,000
3884 SB 821
4119 SCAQMD
3785 Asset Foffe'~ure
3330 Pub. Safmy Augment.
38x:x Measure'M'-T/Comp.
39xx Gas Tax
Other
From other Governments:
4333 CDBG .
4334 MCAS Closure
Other
Locally Raised:
Special Benefit Assess. $399,700
34xx License & Permits
3332 Business Ucense
32xx Frachise Fees
36xx Developer Fees
35xx Fines & Forfeitures
User Fees
Other ($4,700) $500 ($1,27
Miscellaneous:
Sale of Property
Interfund Transfers
Sub Total: $400,300 $500 $0 $398,425 $0 $0 $0 $149,000
Interest Earnings
Total Revenue: $400.300 $500 $0 $398,425 $0 $0 $0 $149,000
Sub Tmal: $400,800 Sub Total: $398,425 SUb Total: $o
Interest by Fund: $1,000
Fund Total: $400,800 $398,425 $0 $150,000
Grand Totals:
Total All Interest: Proceeds: Non Proceeds: Total:
$956,000 $23,909,300 $29,938,443 $53,847,743
$424,480 $531 ~520 $956,000
$24,333,750 $30,469,963 $54,803,743
WORKSHEET # 3
Interest Earnings Produced by Taxes
Fiscal Year 98/99
Based on Budget Projections for 1998/99
Amount Source
A. Non-Interest Proceeds
of Taxes
$23,909,300 From worksheet # 2
B. Minus Exclusions
$0 From worksheet # 7
C. Net Invested Taxes
$23,909,300 (A-B)
D. Total Non-Interest Proceeds
and Non-Proceeds of Taxes
$53,847,743 From worksheet # 2
E. Tax Proceeds as % of Total
Proceeds.
44.40%
(C/D)
F. Total Interest Earnings
$956,000 From worksheet # 2
G. Amodnt of Interest Earned
from Taxes.
$424,480 (E'F)
H. Amount of Interest Earned
From Non-Taxes.
$531,520 (F-G)
WORKSHEET Cf 4
Appropriations Subject to Limit
Fiscal Year 98/99
Based on Budget Projections for 1998/99
. .
Amount Source
A. Proceeds of Taxes
$24,333,780 From worksheet Cf 2
Exclusions
$0 From worksheet Cf 7
C. Appropriations Subject
to Limitation
D. cUi'rent Year Limit
$24,333,780
$35,071,942
(A-B)-
From worksheet Cf 6
E. Oved(Under) Limit
($10,738,162)
To Compute Limit To:
1994-95
·
1995-96:
1996-97:
1/1/93
1/1/94
1/1/94
1/1/95
1/1/95
1/1/96
WORKSHEET # 5
PoPulation Increases
Fiscal. Year 98/99
Based on Budget Projections for 1998/99
City
Population
Increase
52,818
55,012
55,053
57,849
4.15%
5.08%
56,821
58,940
3.73%
County
Population
Increase
2,540,452
2,582,051
1.64%
2,583,608
2,627,949
1.72%
2,583,745
2,610,959
1 .O5%
WORKSHEET Cf 6
Appropriations Limit
Fiscal Year 98/99
Based on Budget Projections for 1998/99
Amount Source
A. Last Years Limit
$32,576,620 From Exhibit A
B. Adjustment Factors
1. Population
2. Price Factor
Total Adjustment
C. Annual Ajustment
D. Other Adjustments:
1.0337 Deptof Finance
1.0415 Dept of Finance
1.07659855 (BI*B2)
$2,495,322 (B'A)
Sub Total
$0
E. Total Adjustments
F. Current Years Limit
$2,495,322 (C+D)
'$35,071,942 (A+E)
WORKSHEET Cf 7
Excluded Appropriations
Fiscal Year 98/99
Based on Budget.Projections for 1998/99
Category Amount
Court Orders:
sub total $0
Federal Mandates:
sub total $0
Qualified Capital Outlays:
sub total $0
Qulified Debt Service:
sub total $0
Total Excludable $0
STATE OF CALIFORNIA
DEPARTMENT OF FINANCE-"
OFFICE OF THE DIRECTOR
STATE CAPITOL, ROOM 1145
SACRAMENTO, CA 95814-4998
May 1, 1998
Dear Auditor/Controller/Fiscal Offic, en
PRICE AND POPUI~TION DATA FOR LOCAL JURISDICTIONS
PETE V~qLSON, G~v~-nor
RECEIVED
FINANCE DEPT.
Appropriations Limit
Article XIII B of the California Constitution specifies that appropriations made by state and
local governments may increase annually by a factor comPrised of the change in population
combined with either the change in California per capita personal income .or the change in .the
local assessment roll due to local nonresidential construction
The Department of Finance is mandated to provide the population and California per capita
personal income change data for local jurisdictions to calculate their appropriations limits. The
change in the local assessment roll due to local nonresidential construction may be obtained
fi-om your county Assessor. The enclosures contain the price factor and population percentage
change for setting your 1998-99 appropriation limit.
Enclosure I provides the change in California's per capita personal income price factor. An
example of how to utilize this price factor and the population percentage change in calculating
your 1998-99 limit is included.
Enclosure H provides the population percentage change factors for cities and counties.
Enclosure JlA provides the population percentage change factor for counties and for the total
incorporated population of each county.
These population percentage changes were prepared pursuant to Sections 2227 and 2228 of the
Revenue and Taxation Code and are calculated as of Janvary 1, 1998. Section 2227 specifies
that state mental institutions, federal military bases and state and federal prisons be excluded
from the percentage change calculations.
Population Factors for Special Districts
This letter may be received by special districts, which were exempt from establishing
appropriation limits by Article XIII B, Section 9(c). Receipt of this letter should not be
construed as a requirement by the'Department of Finance to establish an appropriation limit.
Auditor/Controller/Fism
May 1, 1998
Page 2
Certification
The certification program applies to cities and counties only and does not aPply to special
districts. "
Sections 11005.6 and 30462.1 of the Revenue and Taxation Code, Section 21022 Streets and
Highways Code, and Section 38421 Vehicle Code specify that if a Department of Finance
population estimate is ~eater than the current certified population, the DeparUnent shall
automatically file a certified copy with the Controller not less than 25 days nor more than. 30
days after completion of the estimate.' The Department will certif3, the higher estimate
unless a written request not to certify is received by the Department from the city or
county within 25 days of the completion of the estimate. A city or county requesting that
their kig~her estimate not be certified will reinain at the current certified population.'
The Department of Finance will not certify a population estimate that is lower than the current
certified population unless requested to do so by a city or a county. 'The request for
certification must be received by the Department on or before June 1, 1998.
Further Information
Questions concerning population should be directed to the Demographic Research Unit at
(916) 323-4086.
~~~~KAiG L' . BROWN'
Director
Enclosures
May 1, 1998
Enclosure I
Price Factor: Article XII'I B specifies that local jurisdictions select their
cost-of-living factor to compute their appropriation limit by a vote of their
governing body. The cost of living factor provided here is per capita personal
income. If the percentage change in per capita personal income is selected, the
percentage changes to be used in setting the 1998-99 appropriation limit are:
Per Capita Personal Income
Fiscal
Year (FY)
Percentage change
over prior year
1998-99 4.15
g.
Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 1998-99
appropriations limit.
1998-99:
Per Capita Change = 4.15 percent
Population Change = 1.81 percent
Per Capita converted to a ratio:
,
4.15 + 100 = 1.0415
100
Population converted to a ratio:
1.81 + 100
100
= 1.0181
Calculation of factor for FY 98-99:
1.0415 x 1.0181 = 1.0604
Enclosure II
Annual Percent Change in Population Minus Exclusions' January 1, 1997
to January 1, 1998 and Total Population January ¶, 1998
Total
County Percent Change -- Population Minus Exclusions -- Population
City 1997-98 1-1-97 1-1-98 1-1-98
ORANGE
ANAHEIM 1.24 297476 301176 301176
BRFA 1.10 35498 35890 35890
BUENA PARK 1.28 73577 74517 74517
COSTA MESA 0.81 102556 103387 104237
CYPRESS 1.23 47354 47938 47938
DANA POINT 1.12 36460 36868 36868
FOUNTAIN VALLEY 0.82 55176 55628 55628
FULLERTON 1.16 123642 125081 125081
GARDEN GROVE 0.86 153084 154398 154398
HUNTINGTON BEACH · 1.37 189823 192430 192430
IRVlNE 2.32 128818 131807 133152
LAGUNA BEACH 1.15 24249 24527 24527
LAGUNA HILLS 0.74 30158' 30381 30381
LAGUNA NIGUEL 1.92 56744 57836 57836
LA HAB'RA 0.74 54727 55133 55133
LAKE FOREST 0.72 58227 58649 58649
LA PALMA 0.73 15871 15987 15987
LOS ALAMITOS 0.99 11664 11779 11854
MISSION VIE JO 2.31 92558 94699 94699
NEWPORT BEACH 2.99 70512 72623 72623
ORANGE 1.59 '123105 125065 125065
PLACENTLa, 2.79 45865 47143 47143
SAN CLEMENTE 1.28 47633 48242 48242
SAN JUAN CAPISTRANO 4.13 29840 31071 31071
SANTA ANA 0.70 309042 311210 311210
SEAL BEACH 0.77 25954 26155 26742
STANTON 0.72 33210 33449 33449
TUSTIN 3.37 61216 63276 66420
VILLA PARK 0.97 6484 6547 6547
WESTMINSTER . 1.34 83717 84835 84835
YORBA LINDA 2.23 58939 60255 60255.
UNINCORPORATEi~ 5.69 182002 192353 198308
COUNTY TOTAL 1.69 2665181 2710335 2722291
° Exclusions include residents in state mental institutions, federal military installations, and state and federal Prisons.
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