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Home My WebLink About14 APPROPRIATION 01-02 07-16-01AGENDA REPORT MEETING DATE' JULY 16, 2001 TO: WILLIAM A. HUSTON, CITY MANAGER FROM' RONALD A. NAULT, FINANCE DIRECTOR SUBJECT' APPROPRIATION LIMIT FOR FISCAL YEAR 2001/2002 NO. 14 07~.6,-01' 330-50 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' . Select the change in the California per Capita Personal Income as the price factor for adjusting the 2001/2002 appropriation limit. 2. Adopt Resolution 01-76 setting the appropriation limit for Fiscal Year 2001/2002 at $45,650,362. 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 2001/2002. 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 $45,650,362. 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 2001/2002 by $16.4 million. Ronald ~. Nault '"' Finance Director RAN:ts Attachments B U D G&CAF R: Appropd ationLim itStaftRepod2001, doc RESOLUTION NO. 01-76 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2001-2002 IN ACCORDANCE WITH ARTICLE XIIIB OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, AND SECTION 7910 OF THE GOVERNMENT CODE 9 l0 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, 2001; and WHEREAS, the appropriation limit must be adhered to in preparing and adopting this City's Annual Budget; 13 !5 !9 20 NOW, THEREFORE, the City Council of the City of Tustin and order as follows: does hereby resolve 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, 2001 through June, 2002 is $45,650,362. 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 16th day of July, 2001. 23 Tracy Wills Worley Mayor 25 ATTEST: 28 Pamela Stoker City Clerk CITY OF TUSTIN RESOLUTION CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF TUSTIN ) l0 RESOLUTION NO. 01-76 16 Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby ceriify 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 16th day of July, 2001, by the following vote: l? 18 !9 COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: 20 Pamela Stoker City Clerk 28 R ES :Appropriation Li rn irResolution For2001-2002. doc m=iscol Year 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Exhibit A City of Tustin Appropriations Limits Appropriations Limit for the Base Year Ending ,Tune 30, 1987: (a) (b) Per Capita Current P. Income Population Calculation Cumulative Change Change Fact or Fact or 1.0347 1.0199 1.0§53 1.0553 1.0466 1.0579 1.1072 1.1684 1.0519 1.0238 1.076c) 1.2583 1.0421 1.0435 1.0874 1.3683 1.0414 1.0273 1.0698 1.4639 0.9936 1.0615 1.0547 1.5440 1.0272 1.0687 1.0978 1.6949 1.0071 1.0415 1.0489 1.7778 1.0472 1.0508 1.1004 1.9563 1.0467 1.0373 1.0857 2.1240 1.0467 1.0283 1.0763 2.2861 1.0415 1.03371 1.0766 2.4612 1.0453 1.0396 1.0867 2.6746 1.0491 1.0410 1.0921 2.9210 1.0782 1.0172 1.0967 3.2036 $14,249,831 Amended Limit $15,037,847 $16,649,876 $17,930,838 $19,498,555 $20,860,143 $22,001,327 $24,1§2,367 $25,333,288 $27,876,693 $30,266,894 $32,576,913 $3,5,072,257 $38,112,807 $41,623,496 $45,650,362 01-02 Factors as reported by the State Department of Finance Per Capita Personal Income over Prior Year: Population Change: Orange County: 7.82% 1.72% 2.02% U:\Excel~ppropriation Limit Worksheet..xls: Sheetl 7/11/01 Page I of 1 Workshee, #1 User Fees Versus Cos, Fiscal Year 01/02 B~sed on Budget Projec, ions Program Parks & Recreation Services Administration: 4466-Non-Resi dent iai Fees 5ports: 4449-Spor?s Fees 4468-Sports Park Concession 47;20-Sports Fee-Tennis 47PI-Sports Fee-Youth Classes: 4450-Classes~Cultural Arts 4471-bay Camp Senior Programs: 4452-Senior Classes 4712-Senior Center Rentasl Support Services: 4713-CT Gym Rentals Tustin Youth Center: 4451-Youth Service Fees 4709-Newport Family Youth Cente~ Fees 11,000 11,000 185,000 3,300 39,000 64,980 292,280 260,000 68,980 328,980 53,350 Expenses 345,123 345,123 625,363 360,834 53,350 326,183 233,732 233,886 233,886 bifference Tox/(non-Tax) -334,123 ;334,123 -333,083 -31,854 -272,833 -233,732 -233,886 Total 685,610 2,125,121 -1,439,511 U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #1 7/11/01 Page 1 of 1 0 0 0 0 0 0 ~j o o o o ~.. ~J o o 0 0 0 0 0 0 0 0 0 0 ~' 0 0 0 0 0 0 ~ o o 0 0 0 o 0 0 oooooo~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0~ 0 ~ 0 0 0 0 0 0 0 ~ 00~ 0 0 0 0 0 0 0 0 0 0 ~ ~ 0 ~ ~ 0 0 0 ~ ~ o~~oo ~ ~ o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0~ 0 ~ 0 0 0 0 0 ~ 0 0 0 0 0 0 0 0 o ~j o ~.. ,,~ d: ! × o ~Z ~ 0 .i-. c- o · 0 0 0 0 0 0 t,,. 0 F,. 4~ 0 0 0 0 0 0 0 0 0 0 0 0 0 --~ ~1- L¢3 0 0 0 0 0 :ti: x x o ,-, ('um ,4'- ,om'.. 00 o x x o x x ('u x x x x x +- ~ x m -3 m m m 03 03 03 ,4'- x x ,o x x h. Xx X X X X X 0 oJ {M 0 I~ I~ 0 I~ I'-. ~0 0 0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 ~0 0 ~0 0 ~ ~0 0 -~ pOO~ 0 o .~. 0 0 0 0 o 0~'~ Worksheet #3 Appropriations Subject to Limit Fiscal Year 01-02 Based on 01-02 Budget Projections A. Proceeds of T~xes Amount $29,284,100 From Work Sheet #2 B. Exclusions $0 From Work Sheet #6 C. Appropriations Subject to Limit. $29,284,100 (A-B) b. Current Year Limit $45,650,362 From Work Sheet #5 E, Over/(Under) Limit ($16,366,262) (c-b) U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #3 7/11/01 Page 1 of 1 To Compute Limit to: 1994/95 01/01/93 01/01/94 Worksheet ~ Population Increase Fiscal Year 01-02 Based on 01-02 Budget Projections County City population Increase Population Increase 52,818 2,540,452 55,012 4.15% 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% U:\ExcelV~ppropriation Limit Worksheet..xls: WorkSheet ~ 7/11/01 Page 1 of 1 A, B. Co Last Y¢o~.s Limit Worksheet #5 Appropriations Limit Fiscal Year 01-02 Based on 01-02 Budget Projections Adjustment Factors 1. Population '2. Price factor Annual Adjustments Amount $41,623,496 b. OtheP Adjustments: Sub Total 1.0172 1.0782 1.0967 E, $4,026,867 ! Current Year Limit $0 $4,026,867 $45,650,362 Sour'c(~ From Exhibit A bept of Finonce bept of Finonce (BI*B2) (¢+b) (A+E) U:\Excel~ppropriation Limit Worksheet..xls: WorkSheet #5 7/11/01 Page 1 of 1 Worksheet #6 .Excluded Appropriations Fiscal Year 01-02 Based on 01-02 Budget Projections Catfgoffy Amount Cou~t O~d¢~s: Sub Total $0 Federal Mandates: Sub Total .I;0 Qualified Capital Otlay$: Sub Total $0 Qualified Dept Service: Sub Total $0 Total Exclusions $0 U:\ExcelV~ppropriation Limit Worksheet..xls: WorkSheet #6 7/11/01 Page 1 of 1