HomeMy WebLinkAbout18 APPROPRIATION LIMIT FOR FY 2014/15Agenda Item 18
Reviewed:
AGENDA REPORT City Manager
Finance Director
MEETING DATE: JUNE 17,2014
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR / CITY TREASURER
SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2014/2015
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 3, 2014.
RECOMMENDATION:
1. Select the change in the California per Capita Personal Income as the price
factor for adjusting the Fiscal Year 2014/2015 appropriations limit.
2. Adopt Resolution No. 14-46 setting the appropriation limit for Fiscal Year
2014/2015 at $73,045,518.
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 1978179
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 17, 2014
Appropriation Limit for FY 2014/15
Page 2
Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years
1987/1988 through 2014/2015. 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 $73,045,518. 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 2014/2015 by $34,397,818.
Pamela Arends -King
Finance Director / City Treasur
Attachment
Exhibit A
Worksheet #1
Worksheet #2
Worksheet #3
Worksheet #4
Worksheet #5
Resolution No. 14 -46
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 Chanqe
Change
Factor Factor Limit
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
2013 -14
1.0512
1.0178
1.0699
5.1189
$72,944,017
2014 -15
0.9977
1.0037
1.0014
5.1261
$73,045,518
14 -15 Factors as reported by the State Department of Finance
Per Capita Personal Income change over Prior Year: 5.12%
Population Change:
City of Tustin: 0.37%
Orange County: 0.93%
Worksheet #1
User Fees Versus Cost
Fiscal Year 2014/15
Based on 2014 -15 Budget Projections
Difference
Program Fees Expenses Tax /(non -Tax)
Parks 6 Recreation Services
Administration: 604,200
4466- Non - Residential Fees 13,500
13,500 604,200 - 590,700
Sports:
4449 - Sports Fees
4720 - Sports Fee -Youth
4721 - 5ports Fee - Tennis
Classes:
4450 - Classes /Cultural Arts
4711 -Day Camp
Senior Programs:
4452 - Senior Classes
Support Services:
4713 -CT Gym Rentals
Tustin Youth Center:
3663 -Park and Building Rentals
933,800
170,000
96,000
40,000
306,000 933,800 - 627,800
518,800
290,000
121,500
411,500 518,800 - 107,300
448,100
60,000
60,000 448,100 - 388,100
254,000
0
0 254,000 - 254,000
344,700
151,500
151,500 344,700 - 193,200
Total 942,500 3,103,600 - 2,161,100
6110/2014 Page 2 of 10
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Worksheet #3
Appropriations Subject to Limit
Fiscal Year 2014 -15
Based on 2014 -15 Budget Projections
Amount Source
A. Proceeds of Taxes $38,647,700 From Work Sheet #2
B. Exclusions
C. Appropriations Subject to Limit
Current Year Limit
E. Over /(Under) Limit
$0
$38,647,700 (A -B)
$73,045,518 From Work Sheet #5
($34,397,818) (C -D)
6/1012014 Page 8 of 10
Increase
2.02%
2.06%
1.65%
1.42%
1.13%
0.83%
0.84
1.02%
1.02%
1.01%
0.70%
0.89%
0.78%
0.93%
6/1012014 Page 9 of 10
Worksheet #4
Population Increase
Fiscal Year 2014 -15
Based on 2014 -15 Budget Projections
County
To Compute Limit to:
City population
Increase
Population
2001/02
01 /01 /00
68,029
2,864,827
01 /01 /01
69,199
1.72%
2,922,837
2002/03
01 /01 /01
68,102
2,878,578
01101102
69,078
1.43%
2,937,958
2003/04
01/01/02
68,898
2,928,793
01/01/03
69,753
1.24%
2,977,151
2004/05
01/01/03
69,712
2,973,732
01/01/04
70,339
0.90%
3,015,888
2005/06
01/01/04
70,408
3,021,203
01/01/05
70,871
0.66%
3,055,493
2006/07
01/01/05
70,617
3,045,682
01/01/06
71,767
1.63%
3,071,035
2007/08
01/01/06
71,754
3,071,222
01/01/07
72,542
1.10%
3,097,008
2008/09
01/01/07
72,348
3,088,594
01 /01 /08
74,218.
2.58%
3,120,181
2009/10
01 /01 /08
73,743
3,106,872
01/01/09
74,825
1.47%
3,138,438
2010111
01/01/09
74,736
3,134,276
01 /01 /10
75,773
1.39%
3,165,962
2011/12
01 /01 /10
75,488
3,008,356
01 /01 /11
75,781
0.39%
3,029,408
2012/13
01/01/11
75,772
3,027,832
01101112
76,567
1.05%
3,054,832
2013/14
01101112
76,618
3,056,919
01/01/13
77,983
1.78%
3,080,859
2014/15
01/01/13
78,071
3,084,324
01/01/14
78,360
0.37%
3,113,088
Increase
2.02%
2.06%
1.65%
1.42%
1.13%
0.83%
0.84
1.02%
1.02%
1.01%
0.70%
0.89%
0.78%
0.93%
6/1012014 Page 9 of 10
Worksheet #5
Appropriations Limit
Fiscal Year 2014 -15
Based on 2014 -15 Budget Projections
Amount Source
A. Last Years Limit $72,944,017 From Exhibit A
B. Adjustment Factors
1, Population 1.0037 Dept of Finance
2. Price factor 0.9977 Dept of Finance
1.0014 (Bl *132)
C. Annual Adjustments $101,501 (B *A)
D. Other Adjustments: $0
Sub Total $101,501 (C +D)
E. Current Year Limit $73,045,518 (A +E)
6/1012014 Page 10 of 10
RESOLUTION NO. 14 -46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING
AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
2014 -2015 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, 2014; 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, 2014
through June, 2015 is $73,045,518.
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 17TH day of June, 2014.
Resolution 14 -46
Page 1 of 2
ELWYN A. MURRAY,
Mayor
JEFFREY C. PARKER,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, 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. 14-46
was duly passed and adopted at a regular meeting of the Tustin City Council, held on
the 17TH day of June, 2014, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
JEFFREY C. PARKER,
City Clerk
Resolution 14 -46
Page 2 of 2