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HomeMy WebLinkAbout02 APPROP'S LIMIT 09-06-94AGENDA NO. 2 9-6-94 ,nter-Com' DATE: AUGUST 25, 1994 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER FINANCE DEPARTMENT RESOLUTION 94=10?ADOPTING APPROPRIATIONS LIMIT FOR FISCAL YEAR 1994-1995. RECOMMENDATION: Adopt Resolution 94-107 setting the appropriations limit for Fiscal Year 1994-1995. FISCAL IMPACT: No fiscal impact on the City. 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 limits were allowed to grow based on the annual increased 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. Proposition 111 provides new adjustment formulas which make the appropriation limit more responsive to local growth issues. It also requires 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 1994-95, and Exhibit "B" compares the appropriation limits and the fiscal year appropriations subject to the limit. Exhibit "C" ~details the calculation of proceeds of tax and non proceeds of tax for the Fiscal Year 1994-95. The appropriation limits for the past six years have been recalculated using the new formulas which are consistent with the intent of Proposition 111. As exhibit "B" indicates, we continue to be below the annual appropriation limit. The City auditors have reviewed and approved the annual appropriation limit calculation in conformance to Proposition 111. Page 2 August 25, 1994 Appropriations Limit For Fiscal Year 1994-95, we are below our limit by $4.3 million. The cumulative growth factors this year, as provided by the State Department of Finance, were a certified population of 59,751, an increase of 4.15 percent, and the California per capita personal income increase of .71 percent. Ronald A. Nault Director of Finance I~m~Hern-and~z Administrative RAN:IH:is Attachments a: apropt i n · [ mt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION 94-107 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, DETERMINING AND ADOPTING AN APPROPRIHTIONS LIMIT FOR THE FISCAL YEAR 1994-1995 1N 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, 1994; and WHEREAS, the appropriations limit must be adhered to in preparing and adopting this City's Annual Budget. NOW, THEREFORE, the City Council of the City of Tustln does hereby resolve and order as follows: Section I: 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 appropriations limit for the fiscal year beginning July, 1994 thru June, 1995 is $25,333,350. Section 2: The appropriations 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 6th day of September , 1994. ATTEST: Thomas R. Saltarelli Mayor Mary Wynn, City Clerk EXHIBIT A City of Tustin Appropriation Limits For the Years Ended June 30, 1987~- 1995 Appropria tions h'ffEt for £tscal year ended June 30, 1987 (base year) $14,249,831 ANNUAL ADJUSTMENT FACTORS: Fiscal Year Price Population Combined Factors Cumulative Factors* 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 .O698 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 'Appropriation limit lot F~scal year ended June $Oth (calculated using base yea0 1.0489 1.7778 ~HIBIT B City of Tustin Summary of Appropriations Limit For thc Years Ended June 30, 1987--1995 Amount Subject Variance Fiscal Year Appropriation Limit to the Limit Over/(Under 1987- 88 $15,037,847 $11,727,140 ($3,310,707) 1988-89 $16,649,503 $14,275,605 ($2,373,898) 1989-90 $17,930,562 $14,580,062 ($3,350,500) 1990-91 1991-92 $19,495,194 $20,860,328 $14,536~578 $17,321,698 ($4,958,616) ($3,538,630) 1992-93 $22,001,739 $16,317,522 ($5,684,217 1993-94 1994-95 $24,152,039 $25,333,350 $19,037,168 $21,025,049 ($5,114,871 ($4,308,300 Exhibit C City of Tustin Annual Appropriations Limit 1994-1995 Appropriations Limit And 1994-1995 Appropriations Subject To Limit Appropriations Limit for fiscal year ended June 30, 1987 (base year) 1994-95 Cumulative Growth Rate 1994-95 Appropriations Limit $14,249,831 1.7778 $25,333,350 Total Governmental Appropriations Less: Non Proceeds of Tax PERS Unfunded Liability General Obligation Bonded Debt Use of Prior Years Reserves Net Appropriations Subject to Limit $34,965,801 ($8,315,1u9) ($127,459) $0 ($5,498,184) $21,025,049 1994-95 Appropriations Limit Variance Over/(under) 1994- 95 Limit $25,333,350 ($4,308,300) Exhibit D City of Tustin Annual Appropriations Limit 1994-95 Proceeds of Tax Computation- (A)Taxes (B)License/Permits (C) Fines/Forfeitures (D)Revenue from Other Agencies (E)Charges for Services (F)Revenue from Use of Property (G)Use of Money Sub-Total $1,138,000 Total $16,748,700 $1,709,800 $0 $432,100 $0 $325,000 $1,971,800 $4,176,514 $0 $1,246,225 $0 $85,500 $18,720,500 $798,030 $19,518,530 $7,975,139 $339,970 $8,315,109 TOTAL FUNDS AVAILABLE SUBJECT TO THE LIMIT $27,833,639 1994-95 ANALYSIS OF REVENUES FOR THE GANN LIMIT EXHIBIT D-1 PROCEEDS NON-PROCEED6 DESCRIPTION OF TAX OF TAX (A)TAXES PROPERTY TAX: GEN FUND $3,800,000 FRANCHISE FEES: SALES TAX: TRANSIENT LODG: BUSINESS LIC: NEW CONST. TAX: BLDG PERMIT-E.TUS: NEW' CONST.- E. TUS: REAL PROP.TRANS: TUS.ST.LT DIST: TUS. LANDSCAPE/LT. DIST: ;: ~O!AL 'TAXES (B)LIC/PERMITS $0 $780,500 $11,150,000 $92,000 $26O,000 $10,000 $895,100 $391,600 $150,000 $442,000 $487,300 : $16~748,700 $1 i709,800 (C)FINES&FORFEITURES (D)REVENUE FROM OTHER AGENCIES GENERAL FUND: MOTOR VEH.IN-LIEU HOME PROP TX REL TRAILER COACH BICYCLE TRAIL FUNDS OFF HIGHWAY VEH POST REIMB SR. CTR GRANT C.D.B.G. ASSET FORFEITURE MEASURE M PUBLIC SAFETY AUGMENTATION COUNTY/STATE GRANTS GAS TAX FUND CALTRANS REIM SCAQMD MARINE BASE CLOSURE TOTAE REV ER OTHER AGN $1,885,000 $78,000 $8,000 $17,518 $32,000 $811,545 $150,000 $1,082,000 $155,000 $65,000 $1,560,595 $45,000 $48,000 $209,856 $4,17C 1994-95 ANALYSIS OF EVENUES FOR THE GAl' LIMIT EXHIBIT D-2 PROCEEDS NON -PROCEEDS DESCRIPTION OF TAX OF TAX (E-)CHARGES FOR SERVICES GENERAL FUND: PLAN CK FEES-E.T. FEE FOR SERVICES PERS CREDIT DEVELOPER SHARE LIBRARY MAINT. RECOVERY OF EXPENSE OTHER $433,100 $741,700 $0 $23,000 $48,425 (F-)REVENUE FROM USE OF PROPERTY GENERAL FUND: FACILITY RENTAL FIRE STATION RENT PARK RENTAL SALE-UNCL PROP TOTAL REVENUES $18,720,500 REVENUE FROM USE OF MONEY GENERAL FUND CAPITAL IMPROVEMENT FUND ASSET FORFEITURE W/COMP SCAQMD MARINE BASE CLOSURE $750,000 $300,000 $25,000 $60,OO0 $3,000 $30,O00 GAS TAX $10,000 ; TOTAEUSEOFMONE~: ~ : : : i; $1,138,000 $30,500 $0 $10,000 $7,975,139