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HomeMy WebLinkAboutRESO 9532RESOLUTION N0.9532 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DETERMINING THE CALCULATION OF THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016 WHEREAS, under Article XIIIB of the Constitution ofthe State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit (Limit); and WHEREAS, since fiscal year 1991, the City is permitted to annually adjust its Limit in accordance with inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the Limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2016, which was adopted by ordinance of the Council on June 15, 2015; and WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the Limit has been determined, and the adjustment factors on which the calculation is based are a 3.82% percent change in California per capita income and a 1.13% percent change in the population growth for Santa Clara County; and WHEREAS, the documentation used in the determination of the Limit has been made available to the general public for fifteen (15) days prior to the date of adoption ofthis resolution; and WHEREAS, according to the final calculation, the City's net appropriations subject to limitation are approximately $100.60 million. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2016, the final calculation of the Appropriations Limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City's appropriations subject to limitation are under the Limit by approximately $41.31 million. SECTION 2. The Council hereby adopts the final calculation ofthe Appropriations Limit of the City for Fiscal Year 2016, a copy of which is attached hereto as Exhibit A. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, and, therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: June 29, 2015 AYES: BERMAN, BURT, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: DUBOIS ABSTENTIONS: APPROVED: ~tht~ City Clerk Mayor 2 RESOLUTION 9532 APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR FISCAL YEAR 2016 ADOPTED BUDGET Total Budgeted Appropriations FY 2016 Adopted Budget Less: lnterfund Transfers Allocated Charges Non-Proceeds Net Appropriations Subject to Limit CITY OF PALO ALT01 General Fund $ 185.67 $ (22.7 1) $ (16.43) $ (49.7 4) $ 96.79 ($IN MILLIONS) $ $ $ $ $ Capital Projects Funds 47.54 (47.54) $ $ $ $ $ Special Revenue Funds 9.85 (5.75) (5.18) (1 .08) $ $ $ $ $ Debt Service Fund 4.90 4.90 FY 2016 Per Capita Income Change (CA Department of Finance) Factor A FY 2016 Population Change (Santa Clara County) Factor B FY 2015 Adopted Appropriations Limit Factor A x Factor B FY 2016 Adopted Appropriations Limit Net Appropriations Subject to Limit Amount Under the Limit $ $ $ $ $ $ $ $ $ Combined Funds 247.96 (28.47) ( 16.43) ( 1 02.46) 100.60 3.82% 1.0382 1.1 3% 1.011 3 135.17 1.0499 141.92 100.60 41 .. 31 The City of Palo Alto remains well within its appropriations limit in FY 2016. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds. Fiscal Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Per Capita Income Factor 0.9977 1.0512 1.0377 1.0251 0.9746 1.0062 1.0429 1.0442 1.0396 1.0526 Population Change Factor 1.0150 1.01 57 1.01 24 1.0089 1.0144 1.0220 1.0172 1.01 52 1.011 8 1.01 82 I Total Adjustment Factor 1.0127 $ 1.0677 $ 1.0506 $ 1.0342 $ 0.9886 $ 1.0283 $ 1.0608 $ 1.0601 $ 1.051 9 $ 1.0718 $ Appropriations Limit 135.17 133.48 125.01 119.00 115.06 116.38 11 3.17 106.68 100.64 95.68 Appropriations Subject to Limit $ 82.93 $ 90.28 $ 96.73 $ 89.00 $ 78.94 $ 72.00 $ 78.64 $ 73.30 $ 70.45 $ 65.87 Amount Under the Limit $ 52.24 $ 43.20 $ 28.28 $ 30.00 $ 36.12 $ 44.38 $ 34.53 $ 33.38 $ 30.19 $ 29.80 On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors.