HomeMy WebLinkAbout13 APPROP'TN LIMIT 07-07-03AGENDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
MEETING DATE: JULY 7, 2003
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULT, FINANCE DIRECTOR
APPROPRIATION LIMIT FOR FISCAL YEAR 2003/2004
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 2003/2004 appropriation limit.
2. Adopt Resolution 03-87 setting the appropriation limit for Fiscal Year 2003~2004 at
$47,310,156.
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 patterns. 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
1987/1988 through 2003/2004. Worksheets #1-6 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 #5 goes through the steps necessary to calculate
the current limit of $47,310,156. 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 2003/2004 by
$18,405,435 million.
Finance Director
Keit~ ~. Neves
Senior Management Analyst
Attachments
BU DGET&CAFR:AppropriationLimitStaffReport2003.doc
RESOLUTION NO. 03-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR
2003-2004 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, 1989; and
WHEREAS, an annual appropriation limit must be determined for this City effective
for the fiscal year beginning July, 2003; 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, 2003 through June, 2004 is $47,310,156.
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 7th day of July, 2003.
ATTEST:
Tracy Wills Worley
Mayor
Pamela Stoker
City Clerk
CITY OF TUSTIN
RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF TUSTIN )
RESOLUTION NO. 03-87
Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, does hereby certify that the whole number of the members of the City Council is
five; that the above and foregoing Resolution was duly and regularly passed and adopted
at a regular meeting of the City Council held on the 7th day of July, 2003, by the following
vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Pamela Stoker
City Clerk
RES:AppropriationLimitResolutionFor2003-2004.doc
Exhibit A
City of Tustin
Appropriations Limits
Appropriations Limit for the Base Year Ending June 30, 1987:
(a) (b) (a)x(b)
Per Capita Current
P. Income Population Calculation Cumulative
Fiscal Year Change Change Factor Factor
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
1997-98 1.0467 1.0283 1.0763 2.2861
1998-99 1.0415 1.0337 1.0766 2.4612
1999-00 1.0453 1.0396 1.0867 2.6746
2000-01 1.0491 1.0401 1.0912 2.9185
2001-02 1.0782 1.0172 1.0967 3.2008
2002-03 0.9873 1.0143 1.0014 3.2053
2003-04 1.0231 1.0124 1.0358 3.3201
03-04 Factors as reported by the State Department of Finance
Per Capita Personal Income over Prior Year:
Population Change:
2.31%
1.24%
$14,249,831
Amended
Limit
$15,037,847
$16,649,876
$17,930,838
$19,498,555
$20,860,143
$22,001,327
$24,152,367
$25,333,288
$27,876,693
$30,266,894
$32,576,913
$35,072,257
$38,112,807
$41,587,510
$45,610,895
$45,675,589
$47,310,156
Worksheet #1
User Fees Versus Cost
Fiscal Year 03/04
Based on Budget Projections
Program
Parks & Recreo, ion .Services
Administro, ion:
4466-Non-Residential Fees
5ports:
4449-Sports Fees
4468-Sports Park Concession
4720-5ports Fee-Tennis
4721-Spor,s Fee-Youth
Classes:
4450-Classes~Cultural Arts
4711-Day Camp
Senior Programs:
4452-Senior Classes
4712-Senior Center Rentals
Support Services:
4713-CT Gym Rentals
Tus,in You,h Cen,er:
4451-Youth Service Fees
4709-Newport Family Youth Center
Fees
Difference
Expenses Tax/(non-Tax)
15,000 369,833 -354,833
15,000 369,833 -354,833
192,870
3,300
48,000
92,000
336,170 706,473 -370,303
345,000
86,000
431,000 440,549 -9,549
45,988
8,000
53,988 291,220 -237,232
8,800
8,800 281,398 -272,598
45,000 236,514
45,000 236,514 -191,514
Total 889,958 2,325,987 -1,436,029
U:\Excel~Appropriation Limit Worksheet..xls: WorkSheet #1 6/24/2003 Page 1 of I
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Worksheet #3
Appropriations Subject to Limit
Fiscal Year 03-04
Based on 03-04 Budget Projections
Amount Source
A. Proceeds of Taxes
$28,904,721 From Work Sheet #2
B. Exclusions
$0
From Work 5heat #6
C. Appropriations Subject
to Limit.
$28,904,721 (A-B)
b. Current Year Limit
$47,310,156 From Work 5heat #5
E. Over/(Under) Limit
($18,405,435) (C-lb)
U:\ExcelV~ppropriation Limit Worksheet..xls: WorkSheet #3 6/24/2003 Page 1 of 1
To Compute Limit to:
Worksheet ~
Population Increase
Fiscal Year 03-04
Based on 03-04 Budget Projections
City population Increase
County
Population
Increase
1994/95 01/01/93
01/01/94
52,818
55,012 4.15%
2,540,452
2,582,051
1.64%
1995/96 01/01/94
01/01/95
55,053
57,849 5.08%
2,583,608
2,627,949
1.72%
1996/97 01/01/95
01/01/96
56,821
58,940 3.73%
2,583,745
2,610,959
1.05%
1997/98 01/01/96
01/01/97
59,101
60,776 2.83%
2,618,920
2,646,967
1.07%
1998/99 01/01/97
01/01/98
61,216
63,276 3.37%
2,665,181
2,710,335
1.69%
1999/00 01/01/98
01/01/99
63,182
65,682 3.96%
2,722,075
2,770,335
1.77%
2000/01 01/01/99
01/01/00
65,682
68,316 4.01%
2,770,310
2,828,400
2.10%
2001/02 01/01/00
01/01/01
68,029
69,199 1.72%
2,864,827
2,922,837
2.02%
2002/03 01/01/01
01/01/02
68,102
69,078 1.43%
2,878,578
2,937,958
2.06%
2003/04 01/01/02
01/01/03
68,898
69,753 1.24%
2,928,793
2,977,151
1.65%
U:\Excel~,ppropriation Limit Worksheet..xls: WorkSheet #4 612412003 Page 1 of 1
A. Last Years Limit
B.
Worksheet #5
Appropriations Limit
Fiscal Year 03-04
Based on 03-04 Budget Projections
Amount Source
Adjustment Factors
1. Population
2. Price factor
$45,675,580 From Exhibit A
C. Annual Adjustments
1.0124 bept of Finance
1.0231 bept of Finance
1.0358 (BI*B2)
b. Other Adjustments:
Sub Total
$1,634,567 (B'A)
$0
$1,634,567 (C+b)
E. Current Year Limit
$47,310,156 (A+E)
U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #5 6/24/2003 Page 1 of 1
Worksheet #6
Excluded Appropriations
Fiscal Year 03-04
Based on 03-04 Budget Projections
Category Amount
Court Orders:
Sub Total $0
Federal Mandates:
Sub Total $0
Qualified Capital Otlays:
Sub Total $0
Qualified bept Service:
Sub Total $0
Total Exclusions $0
U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #6 6/24/2003 Page 1 of 1