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Home My WebLink About09 LIMIT FY 2004/2005 07-06-04 AGENDA REPORT Agenda Item 9 Reviewed: 1£ City Manager Finance Director MEETING DATE: JULY 6, 2004 FROM: WILLIAM A. HUSTON, CITY MANAGER RONALD A. NAULT, FINANCE DIRECTOR TO: SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2004/2005 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 2004/2005 appropriation limit. 2. Adopt Resolution No. 04-62 setting the appropriation limit for Fiscal Year 2004/2005 at $49,301,686. 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 2004/2005. 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 $49,301,686. 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 2004/2005 by $18,105,113 million. ~ þ. tJ4.UI-<\ Ke h . Neves Senior Management Analyst Ronald A. Nault Finance Director Attachments BUD G ET & CAF R :Ap p ro pri ation L i m itS taffRe port2 004 . doc RESOLUTION NO. 04-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2004-2005 IN ACCORDANCE WITH ARTICLE XIlIB 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, 2004; 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 XIlIB 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, 2004 through June, 2005 is $49,301,686. 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 6th day of July, 2004. TONY KAWASHIMA Mayor ATTEST: PAMELA STOKER City Clerk CITY OF TUSTIN RESOLUTION CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ORANGE) ss CITY OF TUSTIN ) RESOLUTION NO. 04-62 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 6th day of July, 2004, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk RES :Appropriation Li mitResolution For2004-2005 .doc Exhibit A City of Tustin Appropriations Limits Appropriations Limit for the Base Year Ending June 30, 1987: $14,249,831 (a) (b) (a)x(b) Per Capita Current P. Income Population Calculation Cumulative Amended Fiscal Year Change Change Factor Factor Limit 1987-88 1.0347 1.0199 1.0553 1.0553 $15,037,847 1988-89 1.0466 1.0579 1.1072 1.1684 $16,649,876 1989-90 1.0519 1.0238 1.0769 1.2583 $17,930,838 1990-91 1.0421 1.0435 1.0874 1.3683 $19,498,555 1991-92 1.0414 1.0273 1.0698 1.4639 $20,860,143 1992-93 0.9936 1.0615 1.0547 1.5440 $22,001,327 1993-94 1.0272 1.0687 1.0978 1.6949 $24,152,367 1994-95 1.0071 1.0415 1.0489 1.7778 $25,333,288 1995-96 1.0472 1.0508 1.1004 1.9563 $27,876,693 1996-97 1.0467 1.0373 1.0857 2.1240 $30,266,894 1997 -98 1.0467 1.0283 1.0763 2.2861 $32,576,913 1998-99 1.0415 1.0337 1.0766 2.4612 $35,072,257 1999-00 1.0453 1.0396 1.0867 2.6746 $38,112,807 2000-01 1.0491 1.0401 1.0912 2.9185 $41,587,510 2001-02 1.0782 1.0172 1.0967 3.2008 $45,610,895 2002-03 0.9873 1.0143 1.0014 3.2053 $45,675,589 2003-04 1.0231 1.0124 1.0358 3.3201 $47,310,156 2004-05 1.0328 1.0090 1.0421 3.4598 $49,301,686 04-05 Factors as reported by the State Department of Finance Per Capita Personal Income over Prior Year: 3.28,},o Population Change: 0.9,},o Worksheet #1 User Fees Versus Cost Fiscal Year 04/05 Based on Budget Projections Difference Program Fees Expenses Tax/(non- Tax) Parks & Recreation Services Administration: 4466-Non-Residential Fees 15,000 374,781 -359,781 15,000 374,781 -359,781 Sports: 4449-Sports Fees 198,300 4468-Sports Park Concession 3,300 4720-Sports Fee-Tennis 35,000 4721-Sports Fee-Youth 82,000 318,600 777,097 -458,497 Classes: 4450-Classes/Cultural Arts 345,000 4711-Day Camp 93,930 438,930 449,301 -10,371 Senior Programs: 4452-Senior Classes 40,000 4712-Senior Center Rentals 7,500 47,500 338,891 -291,391 Support Services: 4713-CT Gym Rentals 9,000 9,000 283,726 -274,726 Tustin Youth Center: 4451-Youth Service Fees 3663-Park and Building Rentals 45,000 267,038 45,000 267,038 -222,038 Total 874,030 2,490,834 -1,616,804 U:\ExcellAppropriation Limit Worksheet..xls: WorkSheet #1 6/29/2004 Page 1 of 1 Acct # Description 31xx Property Taxes 32xx Franchise Fees 3330 Sales Tax 3331 TOT 3332 Business License 3333 Real Property Tax 3334 New Const Tax 3336 Bldg permits-ET 3337 Plan Check Fee-ET 3338 New Const Tax-ET 3341 Planning Plan Check East Tustin 3342 Planning Permit / Inspection E. Tustin 3343 Planning Plan Check 3344 Planning Permit / Inspection 34xx License/Permits 35xx Fines & Forfeitures 3660 Interest Income 36xx Use of property 37xx Rev from other Agencies 3772 MVIL 41xx County Grants 44xx Sports Fees 44xx Class/Rec Fees 44xx Service Charges 48xx Transfers In xxxx All Other Sources Sub Total U:\ExcellAppropriation Limit WorksheeLxls: WorkSheet #2 Work Sheet #2 Calculation of Proceeds of Tax Fiscal Year 04-05 Based on 04-05 Budget Projections 01-General Fund 02-CIP Fund 03-SCAQMD 04-Asset Forfeiture Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds $10,551,162 $1,205,000 $13,800,000 $150,000 $260,000 $360,000 $320,700 $15,000 $8,000 $0 $1,600 $3,000 $123,252 $294,252 $2,507,560 $763,000 $130,000 $45,000 $150,000 $1,000 $1,000 $61,501 $101,500 $3,091,458 $78,000 $4,399,711 $15,000 $315,300 $482,230 $197,500 $2,150,000 $1,000,000 $124,500 $5,918,161 $25,000 $29,971,573 $8,413,195 $0 $10,159,619 $0 $79,000 $0 $26,000 Fund Total $38,384,768 Fund Total $10,159,619 Fund Total $79,000 Fund Total $26,000 6/29/2004 Page 1 of 4 Acct # Description 31xx Property Taxes 32xx Franchise Fees 3330 Sales Tax 3331 TOT 3332 Business License 3333 Real Property Tax 3334 New Const Tax 3336 Bldg permits-ET 3337 Plan Check Fee-ET 3338 New Const Tax-ET 3340 Prop 172-Sales Tax 34xx License/Permits 35xx Fines & Forfeitures 3660 Interest Income 36xx Use of property 37xx Rev from other Agencies 3772 MVLF 41xx County Grants 44xx Sports Fees 44xx Class/Rec Fees 44xx Service Charges 48xx Transfers In xxxx All Other Sources Sub Total U:\Excel\Appropriation Limit Worksheet..xls: WorkSheet #2 Work Sheet #2 Calculation of Proceeds of Tax Fiscal Year 04-05 Based on 04-05 Budget Projections 05-Public Safety Augmentation Proceeds Non-Proceeds $229,000 $1,000 08-Measure M-Comp Proceeds Non-Proceeds $12,322,200 09-Measure M Turnback Proceeds Non-Proceeds $50,000 $994,828 lO-Gas Tax Proceeds Non-Proceeds $50,000 $1,249,926 $230,000 $1,299,926 $0 $0 $12,322,200 $0 $1,044,828 $0 Fund Total $230,000 Fund Total $12,322,200 Fund Total $1,044,828 Fund Total $1,299,926 6/29/2004 Page 2 of 4 Acct # Description 31xx Property Taxes 32xx Franchise Fees 3330 Sales Tax 3331 TOT 3332 Business License 3333 Real Property Tax 3334 New Const Tax 3336 Bldg permits-ET 3337 Plan Check Fee-ET 3338 New Const Tax-ET 3340 Prop 172-Sales Tax 34xx License/Permits 35xx Fines & Forfeitures 3660 Interest Income 36xx Use of property 37xx Rev from other Agencies 3772 MVIL 41xx County Grants 44xx Sports Fees 44xx Class/Rec Fees 44xx Service Charges 48xx Transfers In xxxx All Other Sources Sub Total U:\ExcellAppropriation Limit WorksheeLxls: WorkSheet #2 $1,081,505 $0 $1,156,505 $0 $131,500 $0 $977,000 $475,000 $0 Fund Total $1,156,505 Fund Total $131,500 Fund Total $977,000 Fund Total $475,000 Work Sheet #2 Calculation of Proceeds of Tax Fiscal Year 04-05 Based on 04-05 Budget Projections ll-Park development Proceeds Non-Proceeds 16-Supplemental Law Proceeds Non-Proceeds $75,000 $1,500 $130,000 2x-CDBG Proceeds Non-Proceeds $977,000 41-Landscape/Light Dist. Proceeds Non-Proceeds $475,000 6/29/2004 Page 3 of 4 Acct # Description 31xx Property Taxes 32xx Franchise Fees 3330 Sales Tax 3331 TOT 3332 Business License 3333 Real Property Tax 3334 New Const Tax 3336 Bldg permits-ET 3337 Plan Check Fee-ET 3338 New Const Tax-ET 3340 Prop 172-Sales Tax 34xx License/Permits 35xx Fines & Forfeitures 3660 Interest Income 36xx Use of property 37xx Rev from other Agencies 3772 MVIL 41xx County Grants 44xx Sports Fees 44xx Class/Rec Fees 44xx Service Charges 48xx Transfers In xxxx All Other Sources Sub Total U:\ExcellAppropriation Limit Worksheet..xls: WorkSheet #2 Work Sheet #2 Calculation of Proceeds of Tax Fiscal Year 04-05 Based on 04-05 Budget Projections 42-Street Light Dist. Proceeds Non-Proceeds $520,000 81-Workers Compo Proceeds Non-Proceeds 82-Liability Fund Proceeds Non-Proceeds 84-Equipment Replacement Proceeds Non-Proceeds $25,000 $10,000 $150,000 $718,060 $702,316 $520,000 $0 $0 $743,060 $0 $160,000 $0 $702,316 Fund Total $520,000 Fund Total $743,060 Fund Total $160,000 Fund Total $702,316 Totals: Proceeds Non-Proceeds Total Fund Totals $31,196,573 $37,215,149 $68,411,722 Interest Only $131,000 $407,500 $538,500 6/29/2004 Page4of 4 Worksheet #3 Appropriations Subject to Limit Fiscal Year 04-05 Based on 04-05 Budget Projections A. Proceeds of Taxes B. Exclusions C. Appropriations Subject to Limit. D. Current Year Limit E. Over/(Under) Limit Amount Source $31,196/573 From Work Sheet #2 $0 From Work Sheet #6 $31,196,573 (A-B) $49,301,686 From Work Sheet #5 ($18,105,113) (C-D) U:\ExcellAppropriation Limit Worksheet..xls: WorkSheet #3 6/29/2004 Page 1 of 1 Worksheet #4 Population Increase Fiscal Year 04-05 Based on 04-05 Budget Projections County To Compute Limit to: City population Increase Population Increase 1994/95 01101193 52,818 2,540,452 01101194 55,012 4.15'7'0 2,582,051 1.64'7'0 1995/96 01101194 55,053 2,583,608 01101195 57,849 5.08'7'0 2,627,949 1.72'7'0 1996/97 01/01/95 56,821 2,583,745 01/01/96 58,940 3.73'7'0 2,610,959 1.05'7'0 1997/98 01101196 59,101 2,618,920 01/01197 60,776 2.83'7'0 2,646,967 1.07'7'0 1998/99 01101/97 61,216 2,665,181 01101198 63,276 3.37'7'0 2,710,335 1.69'7'0 1999/00 01101198 63,182 2,722,075 01101199 65,682 3.96'7'0 2,770,335 1. 77'7'0 2000/01 01/01/99 65,682 2,770,310 01101100 68,316 4.01'7'0 2,828,400 2.10'7'0 2001102 01/01/00 68,029 2,864,827 01/01101 69,199 1.72'7'0 2,922,837 2.02'7'0 2002/03 01/01/01 68,102 2,878,578 01/01/02 69,078 1.43'7'0 2,937,958 2.06'7'0 2003/04 01/01/02 68,898 2,928,793 01101103 69,753 1.24 '7'0 2,977,151 1.65'7'0 2004/05 01101103 69,712 2,973,732 01101104 70,339 0.90'7'0 3,015,888 1.42'7'0 U:\Excel\Appropriation Limit Worksheet.xls: WorkSheet #4 6/29/2004 Page 1 of 1 Worksheet #5 Appropriations Limit Fiscal Year 04-05 Based on 04-05 Budget Projections Amount Source A. Last Years Limit $47,310,156 From Exhibit A B. Adjustment Factors 1. Population 1.0090 Dept of Finance 2. Price factor 1.0328 Dept of Finance 1.0421 (Bl*B2) C. Annual Adjustments $1,991,530 (B* A) D. Other Adjustments: $0 Sub Total $1,991,530 (C+D) E. Current Year Limit $49,301,686 (A+E) U:\ExcellAppropriation Limit Worksheet..xls: WorkSheet #5 6/29/2004 Page 1 of 1