HomeMy WebLinkAbout18 APPROP LIMIT 95-96 06-17-96 NO. 18
6-17-96
Into r-C o m
DATE:
JUNE 12 v 1996
TO'
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULTv FINANCE DIRECTOR
APPROPRIATION LIMIT FOR FISCAL YEAR 1995-96
RECOMMENDATION:
i ·
Select the change in the California per Capita Personal
Income as the price factor for adjusting the 1995-96
appropriation limit.
·
Adopt Resolution 96-68 setting the appropriation limit
for Fiscal Year 1995-96 at $27,876,443.
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 1986-87 through 1995-96. 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
$27,876,443. 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 1995-96 by $8.6 million.
We will bring a complete recalculation of the appropriation limit
for Fiscal Year 1996-97
adoption process, to the City Council as part of the budget
Ron~%~d A. Naul~ ~
Finance Director
RAN:ts
Attachments
RAN5 :Agenda3. Jun
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RESOLUTION 96-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTINv CALIFORNIAv DETERMINING AND ADOPTING
AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 1995-1996
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, 1979; and
WHEREAS, an annual appropriation limit must be
determined for this City effective for the fiscal year
beginning July, 1995; 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, 1995 through June, 1996
is $27,876,443.
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 17th day of
June , 1996.
ATTEST:
\
Tracy Wills Worley, Mayor
Pamela Stoker, City Clerk
STATE' OF CALIFORNIA
DEPARTMENT OF FINANCE
915 L STREET
SACRAMENTO, CA 95814-4998
PETE WILSON,' Governor
May l, 1995
PRICE AND POPULATION DATA FOR LOCAL JURISDICTIONS
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 appropriation limits. The. change in the
local assessment roll due to local nonresidential construction may be obtained from your county
Assessor. The enclosures contain price and population factors for settin~ your 1995-96 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 factor in calculating 3'our 1995-96
limit is included.
. .
Enclosure II provides the population percentage change factors for cities and counties.
Enclosure I1A 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 January 1, 1995. 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 Cities and Counties
Cities and counties should consult Section 7901 of the Government Code for the various population
factors that may be used for purposes of change in population.
Population Factors for Special Districts
Special districts should consult Section 7901 of the Government Code and Section 2228 of the
Revenue and Taxation Code for the various population factors that may be used for purposes of change
in population.
May 1, 1995
Page 2
Article XIII B, Section 9(c) states that special districts in existence on January 1, 1978, which levied a
tax of 12-1/2 cents or less per $100 assessed value on property within their boundaries as of the
1977-78 fiscal year are permanently exempt from establishing appropriation limits. In addition, any
special districts in existence or created thereafter whose sole funding source is from nonproceeds of
taxes are also exempt. Therefore, special districts which meet either of these two tests do not need to
establish appropriation limits.
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.
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 specif-3' that if a Department of Finance population estimate is
greater than the current certified population the Department shall automatic'ally 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 certify 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 higher estimate not be certified will remain 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 count3,. The request for certification must be
received by the Department on or before June 1, 1995.
Further Information
Questions concerning population should be directed to the Demographic Research Unit at
(916) 322-4651.
Sincerely,
RUSSELL S. GOULD
Director
Enclosures
ANNUAL PERCENTAGE CHANGE IN POPULATION MINUS EXCLUSIONS* JANUARY 1,
TO JANUARY 1, 1995 AND TOTAL POPULATION JANUARY 1, 1995.
1994
ENCLOSURE II
DATE PRINTED
04/25/95
COUNTY
CITY
POPULATION MINUS EXCLUSIONS
ANNUAL
PERCENT CHANGE
1994 TO 1995
POPULATION
1-1-94
1-1-95
TOTAL
POPULATION
1-1-95
ORANGE
ANAHEIM
BREA
BUENA PARK
COSTA MESA
CYPRESS
DANA POINT
FOUNTAIN VALLEY
FULLERTON
GARDEN GROVE
HUNTINGTON BEACH
IRVINE
LAGUNA BEACH
LAGUNA HILLS
LAGUNA NIGUEL
LA HABRA
LAKE FOREST
LA PALMA
LOS ALAMITOS
MISSION VIEJO
NEWPORT BEACH
ORANGE
PLACENTIA
SAN CLEMENTE
SAN JUAN CAPISTRANO
SANTA ANA
SEAL BEACH
STANTON
TUSTIN
VILLA PARK
WESTMINSTER
YORBA LINDA
UNINCORPORATED
ORANGE COUNTY
1.92
1.47
1.25
1.
2.04
4.12
0.29
1.77
1.26
0.27
2.21
0.10
1.00
2.27
1.36
0.19
0.56
2.20
4.21
1.08
1.73
2.78
3.73
2.81
0.28
2.60
0.47
5.08
0.17
1.99
1.15
4.03
290,915
34,612
72,949
101,416
46,026
34,852
55,010
121,540
151,913
189,293
119,864
23,961
25,110
54,487
54,168
58,445
15,693
11,376
86,215
69,350
118,037
44~113
45,081
28,326
310,629'
25,436
32,252
55,053
6,434
81,659
57,410
161,983
296,497
35,122
73,864
102,883
46,963
36,289
55,171
123,692
153,824
189,795
122,513
23,985
25,360
55,724
54,907
58,558
15,781
11,626
89,841
70,098
120,078
45,339
'46,764
29,121
311,491
26,097
32,404
57,849
6,445
83,287
58,069
168,512
296,497
35,122
73,864
1.03,823
46,963
36,289
55,171
123,692
153,824
189,795
123,909
23,985
25,360
55,724
54,907
58,558
15,781
12,425
89,841
70,098
120,078
45,339
46,764
29,121
311,491
26,795
32,404
62,497
6,445
83,287
58,069
173,437
1.72 2,583,608 2,627,949 2,641,355
* EXCLUSIONS INCLUDE STATE MENTAL INSTITUTIONS, FEDERAL MILITARY B-ASES AND STATE
AND FEDERAL PRISONS. '
PAGE 1
Enclosure I
mo
Price Factor: Article XIII B specifies that local jurisdictions select their
cost-of-lMng factor to compute their appropriation limit by a vote of their
governing body. Local jurisdictions may select either the percentage change in
California per capita personal income or the percentage change in the local
assessment roll due to the addition of local nonresidential new construction. If the
percentage change in per capita personal income is selected, the percentage changes
to be used in setting 1995-96 appropriation limit are:
Per Capita Personal Income
Fiscal
Year (FY)
Percentage change
over prior year
1995-96 4.72
B,
Following is an example using sample population changes and the changes in
California per capita personal income as growth factors in computing a 1995-96
appropriations limit.*
1995-96:
Per Capita Change = 4.72 percent
Population Change = 1.31 percent
Per Capita converted to a ratio:
4.72 + 100'= 1.0472
100
Population converted to a ratio:
·
1.31 + 100 = 1.0131
100
Calculation offactor for FY 95-96' 1.0472 x 1.0131 = 1,0609
* Conversion of the factor to a ratio eliminates minus numbers.
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WORKSHEET Cf 3
Interest Earnings Produced by Taxes
Fiscal Year 95/96
Based on un-audited Projected Actuals @ 6/30/96
Amount
Source
A. Non-Interest Proceeds
of Taxes
B. Minus Exclusions
$18,881,118
$0
From worksheet Cf 2
From worksheet Cf 7
C. Net Invested Taxes
$18,881,118
(AB)
D. Total Non-Interest Proceeds
and Non-Proceeds of Taxes
E. Tax Proceeds as % of Total
Proceeds.
$33,375,217
56.57%
From worksheet Cf 2
(C/D)
F. Total Interest Earnings
G. Amount of Interest Earned
from Taxes.
$760,740
$430,368
From worksheet Cf 2
(E'F)
H. Amount of Interest Earned
From Non-Taxes.
$330,372
WORKSHEET # 4
Appropriations Subject to Limit
Fiscal Year 95/96
Based on un-audited Projected Actuals @ 6/30/96
A. Proceeds of Taxes
B. Exclusions
C. Appropriations Subject
to Limitation
D. Current Year Limit
E. Over/(Under) Limit
Amount Source
$19,311,486
$0
From worksheet # 2
From worksheet # 7
$19,311,486
$27,876,443
($8,564,957)
(AB)
From worksheet # 6
(CD)
WORKSHEET # 5
Population Increases
Fiscal Year 95/96
Based on un-audited Projected Actuals @ 6/30/96
To Compute Limit To:
City County
Population Increase Population
Increase
1994-95
1995--96:
1/1/93
1/1/94
1/1/94
1/1/95
52,818 2,540,452
55,012 4.15% 2,582,051
55,053 2,583,608
57,849 5.08% 2,627,949
1.64%
1.72%
WORKSHEET # 6
Appropriations Limit
Fiscal Year 95/96
Based on un-audited Projected Actuals @ 6/30/96
A. Last Years Limit
B. Adjustment Factors
1. Population
2. Price Factor
Total Adjustment
C. Annual Ajustment
D. Other Adjustments:
Amount Source
$25,333,061 From Exhibit A
1 .O5O8
1.0472
1.10039776
Dept of Finance
Dept of Finance
(BI*B2) .
$2,543,383
(B'A)
Sub Total
E. Total Adjustments
F. Current Years Limit
$0
$2,543,383
$27,876,443
(C,+D)
(A+E)
WORKSHEET # 7
Excluded Appropriations
Fiscal Year 95/96
Based on un-audited Projected Actuals @ 6/30/96
Category Amount
Court Orders:
sub total $0
Federal Mandates:
sub total $0
Qualified Capital Outlays:.
sub total $0
Qulified Debt Service:
sub total
Total Excludable
$0