HomeMy WebLinkAbout11 APPROPRIATION LIMIT FOR FISCAL YEAR 2017/2018Agenda Item 11
Reviewed:
AGENDA REPORT City Manager
Finance Director
MEETING DATE: JUNE 20, 2017
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: JOHN BUCHANAN, ACTING FINANCE DIRECTOR
SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2017/2018
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
6, 2017.
RECOMMENDATION:
1. Select the change in the California per Capita Personal Income as the price factor
for adjusting the Fiscal Year 2017/2018 appropriations limit.
2. Adopt Resolution No. 17-30 setting the appropriation limit for Fiscal Year
2017/2018 at $86,379,313.
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 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.
City Council Agenda Report
June 20, 2017
Appropriation Limit for FY 2017/18
Page 2
Exhibit "A" shows the calculation of the Appropriation Limit for each of the Fiscal Years
1987/1988 through 2017/2018. 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 $86,379,313. 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 2017/2018 by $26,406,988.
John uchanan Sean Tran
Ac ' Finance Director Deputy Director of Finance
GI nda Babbitt
Management Analyst
Attachment
Exhibit A
Worksheet #1
Worksheet #2
Worksheet #3
Worksheet #4
Worksheet #5
Resolution No. 17-30
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RESOLUTION NO. 17-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN
APPROPRIATION LIMIT FOR THE FISCAL YEAR 2017-
2018 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 1, 2017; 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 1, 2017
through June 30, 2018 is $86,379,313.
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 20TH day of June, 2017.
Resolution 17-30
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