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Home My WebLink About10 FY 05/06 APPROPRIAT 07-18-05 AGENDA REPORT Agenda lIem Reviewed: City Manager 10 Finance Director ~ MEETING DATE: JULY 18, 2005 TO: FROM: WilLIAM A. HUSTON, CITY MANAGER RONALD A. NAULT, FINANCE DIRECTOR SUBJECT: APPROPRIATION LIMIT FOR FISCAL YEAR 2005/2006 SUMMARY: Article XIlIB 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 2005/2006 appropriation limit. 2. Adopt Resolution No. 05-84 setting the appropriation limit for Fiscal Year 2005/2006 at $52,673,379. 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 Lirnit for each of the Fiscal Years 1987/1988 through 2005/2006. 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 $52,673,379. 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 2005/2006 by $21,037,063. ~MlJ Finance Director ~itkb ~f,uL(J Keith. eves Senior anagement Analyst Attachments U:\Budge' and CAFRlAppropnationLimitStaffReport2005.doc RESOLUTION NO. 05-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2005-2006 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 Califomia at a general election held November 6, 1989; and WHEREAS, an annual appropriation limit must be detemnined for this City effective for the fiscal year beginning July, 2005; 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, 2005 through June, 2006 is$52,673,379. 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 18th day of July, 2005. LOU BONE Mayor ATTEST: PAMELA STOKER City Clerk CITY OF TUSTIN RESOLUTION CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ORANGE) ss CITY OF TUSTIN ) RESOLUTION NO. 05-84 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 18th day of July, 2005, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk U :\Reeolutions&Agreemen'slAppropríation Um itReeol ution For2005- 2006 .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 2005-06 1.0526 1.0150 1.0684 3.6964 $52,673,379 05-06 Factors as reported by the State Department of Finance Per Capita Personal Income change over Prior Year: 5.26% Population Change: City of Tustin: 1.5% Orange County: 1.13% Worksheet #1 User Fees Versus Cost Fiscal Year 05/06 Based on Budget Projections Difference Program Fees Expenses Tax/(non- Tax) Parks & Recreation Services Administration: 4466-Non-Residential Fees 15,000 399,426 -384,426 15,000 399,426 -384,426 Sports: 4449-Sports Fees 169,500 4468-Sports Park Concession 3,300 4720-Sports Fee-Tennis 35,000 4721-Sports Fee-Youth 82,000 289,800 885,039 -595,239 Classes: 4450-Classes/Cultural Arts 410,000 4711-Day Camp 120,310 530,310 497,630 32,680 Senior Programs: 4452-Senior Classes 42,000 4712-Senior Center Rentals 10,000 52,000 313,768 -261,768 Support Services: 4713-CT Gym Rentals 9,000 9,000 308,470 -299,470 Tustin Youth Center: 3663-Park and Building Rentals 52,500 239,336 52,500 239,336 -186,836 Total 948,610 2,643,669 -1,695,059 U:\ExcellAppropriation Urni' Workshee!..xls: WorkSheet #1 07/12/2005 Page 1 of 1 Work Sheet #2 Calculation of Proceeds of Tax Fiscal Vear 05-06 Based on 05-06 Budget Projections Ol-General Fund 02-CIP Fund 03-SCAQMD 04-Asset Forfeiture Acct # Description Proceeds Nan-Proceeds Proceeds Nan-Proceeds Proceeds Non-Proceeds Proceeds Non-Proceeds 31xx Property Taxes $6,255,900 32xx Franchise Fees $1,230,000 3330 Sales Tax $19,362,000 3331 TOT $150,000 3332 Business License $300,000 3333 Real Property Tax $450,000 3334 New Const Tax $332,500 3336 Bldg permits-n $15,000 3337 Plan Check Fee-ET $8,000 3338 New Const Tax-n $0 3341 Planning Plan Check East Tustin $1,600 3342 Planning Permit / Inspection E. Tustin $3,000 3343 Planning Plan Check $100.200 3344 Planning Permit / Inspection $282.700 34xx License/Permits $2,765,000 35xx Fines & Forfeitures $876,000 3660 Interest Income $130,000 $45,000 $120,000 $1,000 $1,000 36xx Use of property $71,501 37xx Rev from other Agencies $96,500 $5,211,958 $82,000 3772 MVIL $3,405,416 41xx County Grants $0 44xx Sports Fees $286,500 44xx Class/Roc Fees $575,610 44xx Service Charges $196,000 48xx Transfers In $2,830,000 $1,000,000 xxxx All Other Sources $495,000 $8,242,410 $50,000 Sub Total $30,385,816 $9,877,611 $0 $14,574,368 $0 $83,000 $0 $51,000 Fund Total $40,263,427 Fund Total $14,574,368 Fund Total $83,000 Fund Total $51,000 UIE"""""PI"""""'on Umil W"""h""" Wo"'Sh~' #2 0711212005 P'O" 01 4 ~ ~ '~ ~ '~ N ~ '" ~ ~]~t ~ ~ d' ¡jj"-;'.,,, ~~-¡;9 3:~æ~ ~ ] " ~ .¡¡ 1 x"; ~~ ~ <!> 6 ~ ~¡¡ ] ~] ]i :¡z ~ ~ ~ :¡] g~ ] ~ g 8<t i 5 ~ z L :¡¡¡ , . ~~ 5 ~ ~] 'i: g . 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'" ~ ~~~ ~f- f-'1-"1-'f-:,i!~>-;: ~~ Ë D.~ ~>-ð'1-'~ð~'Ë'.ot. ~ .'" ~ ~~ ~t~~~~~£!~~~ ~~~i~~ ç~ð ~~oE~~~,"-~~E <!>"-.""~ ":Ef- ~J:8 1l;58t::~"" ~~ ~ ç~E!' ~.¡'-::: t~i~11~.j'~III¡ig~ill~~ "-"-~f-"'~Z"",-~,,-~"-~~~:¡"~"~f-~ 1t x XO-NMV"'I'-"'O X xo X XN X X X X X X ~ X XMMMMMMMMV x x'" x XI'- X X X X X X ~~~~~~~~~~~~~~~~~~;;'~~~~~ ~ ~: ~ M ~ 0 '" § 0' '" v '" ~ § § 0' ~ '" -¡; ~ " 0 ~ '" ~ M' ~ '" '" ~ M' ~ '" 0 '" ~ ~ -g ~ 8 ~' ~ 0 0 '" ~' ~ 0 '" ~ ~ " 0 ~ ~ N' g: ~ ~ N' g: ~ 0 '" ~ ~ " 0 ~ -¡; ~ .0 ~ õ ~ £ i'i ¡ ~ £ l' ~ 0 . ~ ~ ! => j(I ~ t N ~ '" '~ ~]~t ~ g ~ .g< ¡jj ot 2 ~ -r't:;¡;g ~~æ~ ° < ¡¡ ° ß ~ .¡¡ d¡ . . ~ g g ~ ¡~ ~ E ~ n ~~ ;;\"- 00 ~, '" :ó '" i " ~ < "- ~ " ~~ :ë ~i ooi 8, .,. ;; 8, '" '" ~ 8 s" ~ {j i! H 8 " ~ ~ ,¡¡ ~i «>] 8 0' .,. '" '" '" 00 ~f ;; i ti ~ Dot ~~ -' ~ ~ § ðq 0' N v ~ .,.~'" 5 ,~ ~ g 5' x I- I- ~ ~ ¡¡, ¡¡ ¡¡ .0 I-,¥,¥I-~,.>-< ~ v D¡¡~ ~I-~~~~]~~~~l ~ ~~<~ ~"- ,vtl-+:"-I-O"'t<~~ <¡¡"-oO-<V) ~~ ~ -;: g.1¡in1ii:2~æ~ ~~ ~J'~"6 ~ ~ ~~I- ¡¡ot8~"68b~~~'t~-,~~~~~~ ~ ~ '* b '~ "2 ~ ~ Jj ~ ~.~ ,~ ~ ~ ~ s: g g, j ~ ~ ;; "-"-v)I-"'œZ",,,-Z,,-~"-o-<~œ:¡"v)"v)I-< 'It x XO~N~""""""'O X xo X XN X X X X X X ~ X X~~~~~~~~.,. x x", x x.... x x x x x x ~~~~~~~~~~~~~~~~~~~~~~~~ 00 ~ ",' :ó '" 0 '" 8 '" 15, ;; 0 '" '" '" 00 0' ~, ;; 0 '" 0 '" 8 0' ~ '" -¡; ~ .a ~ 00 ~, '" ~ '" '" ~ ~ " < ~ § ",' .... 0. ;; ~8 ~ ~~' ~ N"" 00 '" 'ã ~ 11 ~ {jRS . ~ '" ~ ~~'~" 0,,- ,'" I- " :¡: ~'" '" '" 00 0' ~" ;; :28 ~~'" " ",' 0' ~~~ g ~,;; ot:;; ~ ~ " < ~ >- ]8 ~ ~ " ~ ~~ 8, g ~ -¡; ~ 11 ~ õ ~ æ 8 ~ ~ N } ~ ~ ~ ¡¡ ~ ~ Ë ~ i ~ ~ ~ ~ ~ Worksheet #3 Appropriations Subject to Limit Fiscal Year 05-06 Based on 05-06 Budget Projections Amount Source A, Proceeds of Taxes $31,636,316 From Work Sheet #2 B, Exclusions $0 From Work Sheet #6 C, Appropriations Subject $31,636,316 (A-B) to Limit, D, Current Year Limit $52,673,379 From Work Sheet #5 E, Over/(Under) Limit ($21,037,063) (C-D) U:\ExcellAppropriation Limit Workshee!..xls: WorkShee' #3 07/12/2005 Page 1 of 1 Worksheet #4 Population Increase Fiscal Year 05-06 Based on 05-06 Budget Projections County To Compute Limit to: City population Increase Population Increase 1994/95 01/01/93 52,818 2,540,452 01/01/94 55,012 4.15% 2,582,051 1.64% 1995/96 01/01/94 55,053 2,583,608 01/01/95 57,849 5,08'° 2,627,949 1.7n 1996/97 01/01/95 56,821 2,583,745 01/01/96 58,940 3.73% 2,610,959 1.05'0 1997/98 01/01/96 59,101 2,618,920 01/01/97 60,776 2,83% 2,646,967 1.07% 1998/99 01/01/97 61,216 2,665,181 01/01/98 63,276 3,37% 2,710,335 1.69% 1999/00 01/01/98 63,182 2,722,075 01/01/99 65,682 3.96% 2,770,335 1.77% 2000/01 01/01/99 65,682 2,770,310 01/01/00 68,316 4.01'1'0 2,828,400 2.10'1'0 2001/02 01/01/00 68,029 2,864,827 01/01/01 69,199 1.72'1'0 2,922,837 2.0n 2002/03 01/01/01 68,102 2,878,578 01/01/02 69,078 1.43% 2,937,958 2.06'1'0 2003/04 01/01/02 68,898 2,928,793 01/01/03 69,753 1.24'0 2,977,151 1.65% 2004/05 01/01/03 69,712 2,973,732 01/01/04 70,339 0.90'° 3,015,888 IAn 2005/06 01/01/04 70,408 3,021,203 01/01/05 70,871 0.66'° 3,055,493 1.13'0 U:\ExcellAppropriation Limit Worksheet..xls: WorkSheet #4 07/12/2005 Page 1 of 1 Worksheet #5 Appropriations Limit Fiscal Year 05-06 Based on 05-06 Budget Projections Amount Source A, Last Years Limit $49,301,686 From Exhibit A B. Adjustment Factors 1. Population 1.0150 Dept of Finance 2. Price factor 1.0526 Dept of Finance 1.0684 (Bl*B2) C, Annual Adjustments $3,371,693 (B*A) D. Other Adjustments: $0 Sub Total $3,371,693 (C+D) E, Current Year Limit $52,673,379 (A+E) U:\ExcellApproprlation Limit Worksheet..xls: WorkSheet #5 07/12/2005 Page 1 of 1 Worksheet #6 Excluded Appropriations Fiscal Year 05-06 Based on 05-06 Budget Projections Category Court Orders: Amount $0 Sub Total Federal Mandates: Sub Total $0 Qualified Capital Otlays: $0 Sub Total Qualified Dept Service: $0 Sub Total Total Exclusions $0 U:\ExcellAppropria'ion Limit Worksheet..xls: WorkShee' #6 07/12/2005 Page 1 01 1