HomeMy WebLinkAboutCC 3 APPROP. LIMIT 83-84 1-3-84DATE:
December 14, 1983
CONSENT CALRNDAR
NO. 3
Int · r - C om
FROM:
SUBJECT:
Bill Huston, City Manager
Ron Nault, Finance Director
Proposition 4 - Appropriation Limitation Fiscal Year 1983-84
RECOMMENDATION
Adopt attached Resolution No. 84-7 , setting the City of Tustin's 1983-84
appropriation limit at $12,226,539.
BACKGROUND
Article XIIIB was added to the State Constitution as a result of'the 11/79 general
elections. It is mqre commonly known as Proposition 4 ("The Gann Spending
Limitation.") The intent of this constitutional amendmen% is to separate
9overnmental revenues between taxes and non-taxes, then limit the growth in "tax"
revenues to the increased cost of goods and services experienced by the general
population. Allowance for increases or decreases in population are also
calculated into the annual limitation.
Section 7910 of the Government Code requires a public hearing prior to adopting a
resolution setting the annual appropriation limit.
DISCUSSION
Approximately May i of each year the State Department of Finance must provide us
with the price and population data for local jurisdictions. This years price
factor uses the March to March growth in California personal ~per capita income of
2.35%. This means that the growth in per capita income was less than the CPI for
the previous 12 months.
The net population.as of January 1983 has been certified at 37,021. This is an
increase of 776 or 2.14%. Total population has been certified at 40,204.
The attached worksheet illustrates the determination of the appropriation limit
for 1983-84 of $12,226,539. Net appropriations subject to limitation are
$7,769,216, providing a variance of $4,457,323. The appr.opriations subject to
limit are'based on the adopted 1983-84 budget.
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RESOLUTION NO. 84-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
DETERMINING AND ADOPTING AN APPROPRIATIONS LIMIT FOR THE
FISCAL YEAR 1983-84, 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 1983; 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 Tustin does hereby resolve and
order as folows:
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 appropriations limit
for the fiscal year beginnin§ July 1, 1983 is $12,226,539.
Section 2: The appropriations limit shall not be exceeded in the
proposed budget nor by any proposed amenQment to the budget.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the day of ,1984.
ATTEST:
Ronald B. Hoesterey, Mayor
Mary E. Wynn, City Clerk
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EXHIBIT A
1983-84 APPROPRIATIONS LIMIT/APPROPRIATIONS SUBJEC TO LIMIT
PART I 1983-84 APPROPRIATION LIMIT
1982-83 Appropriation Limit
Cumulative Growth Rate
1983-84 Appropriation Limit
PART II 1983-84 APPROPRIATIONS SUBJECT TO LIMIT
A. Determine proceeds of tax from 9overnmental funds
Proceeds of'Tax'
Non-proceeds
B. Determine appropriations subject to limit
1. Total appropriations-governmental funds
2. Less:
Non-proceeds of tax
General obligation bond dept.
PERS unfunded liability
Use of prior years' reserves to fund cur-
rent year appropriations
TOTAL APPROPRIATIONS SUBJECT TO LIMIT
Appropriation Limit
Under/<Over> Limit
$11,695,561
1.0454
$12,226,539
$ 7,888,989
6,801,017
$15,976,963
<6,801,017>
< 178,07~>
< 40,000>
<1,188,655>
$ 7,769,216
$ 12,226,539
$ 4,457,323