HomeMy WebLinkAbout05 APPROPRIATION LIMIT FOR THE FISCAL YEAR 2022-2023DocuSign Envelope ID: OB517A8F-667D-4459-9540-764A53E687D0
Agenda Item 5
Reviewed.'
DS
.; ADEN A TmSZ+I
City Manager
Finance Director 0"
MEETING DATE: JUNE 21, 2022
TO: MATTHEW S. WEST, CITY MANAGER
FROM: JASON AL -IMAM, FINANCE DIRECTOR/CITY TREASURER
SUBJECT: APPROPRIATION LIMIT FOR THE FISCAL YEAR 2022/23
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 Fiscal Year 2022/23 Proposed Budget as presented to the
City Council on June 7, 2022.
1. Select the change in the California per Capita Personal Income as the price factor for
adjusting the Fiscal Year 2022/23 Appropriation Limit.
2. Adopt Resolution No. 22-33 setting the appropriation limit for the Fiscal Year 2022/23 at
$109,904,672.
CORRELATION TO THE STRATEGIC PLAN:
The adoption of the Fiscal Year 2022/23 Appropriation Limit implements strategy number
three (3) of Goal C.
FISCAL IMPACT:
None.
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 taxes and total appropriations. The base year was 1978/79, and
DocuSign Envelope ID: OB517A8F-667D-4459-9540-764A53E687DO
Appropriation Limit for the Fiscal Year 2022/23
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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 Fiscal Year 2022/23. The
result shows the City of Tustin is below its allowable appropriation limit for the Fiscal Year
2022/23 by $48,961,651. The data used in computing the City's appropriation limit is
available for public inspection.
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Jason AI -Imam Sean Tran `
Finance Director/City Treasurer Deputy Finance Director
Glenda Babbitt
Management Analyst I
Attachments:
1. Exhibit A
2. Resolution No. 22-33
DocuSign Envelope ID: OB517A8F-667D-4459-9540-764A53E687D0
EXHIBIT A
Appropriations Limit
City of Tustin
Fiscal Year 2022/23
AMOUNT
Last Year's Limit (2021/22) $102,424,952
Adjustment Factors
1. Population(/) 0.9977
2. Inflation(') 1.0755
Total Adjustment Factor (3) 1.0730
Total Adjustments 7,479,720
Appropriations Limit for Fiscal Year 2022/23 $109,904,672
Appropriations Subject to Limit:
Proceeds of Taxes $60,943,021
Minus Exclusions -
AppropriationsSubjectto_Limit_ _ _ _ __ _ -- $60,943,021
Fiscal Year 2022/23 Appropriations Limit 109,904,672
Less Appropriations Subject to the Limit 60,943,021
Difference Under the Limit $48,961,651
O)The population factor may be based on the change in the population of 1) the City; or 2)
the County of Orange, as provided by the State of California's Department of Finance. The
population factor adopted by the City for the current year appropriation limit represents the
change in the population of the County of Orange.
(2)The inflation factor may be based on 1) the change in per capita personal income for the
State of California as provided by the State of California's Department of Finance; or 2)
the change in assessed valuation due to new nonresidential construction within the City.
The inflation factor adopted by the City for the current year appropriation limit represents
the change in per capita personal income for the State of California.
(3)The total adjustment factor is calculated by multiplying the population factor by the inflation
factor.
DocuSign Envelope ID: OB517A8F-667D-4459-9540-764A53E687D0
RESOLUTION NO. 22-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING AN
APPROPRIATION LIMIT FOR THE FISCAL YEAR 2022/23
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 on November 6, 1989; and
WHEREAS, an annual appropriation limit must be determined for this City effective
for the fiscal year beginning July 1, 2022; 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, 2022,
through June 30, 2023, is $109,904,672.
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 21St day of June 2022.
AUSTIN LUMBARD,
Mayor
ATTEST:
CARRIE WOODWARD,
Acting City Clerk
Resolution 22-33
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Carrie Woodward, Acting City Clerk and ex -officio Clerk of the City Council of the City
of Tustin, California, do hereby certify that the whole number of the members of the City
Council of the City of Tustin is five; that the above and foregoing Resolution No. 22-33
was duly passed and adopted at a regular meeting of the Tustin City Council, held on
the 218t day of June 2022, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
CARRIE WOODWARD,
-Acting City Clerk -
Resolution 22-33
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