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Home My WebLink AboutRESO 10172RESOLUTION NO. 10172 Resolution of the Council of the City of Palo Alto Establishing the City’s Appropriations Limit for Fiscal Year 2025 WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit; and WHEREAS, since fiscal year 1991, the City is permitted to adjust its appropriations limit annually based on inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the appropriations limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2025, which was adopted by ordinance of the Council on June 17, 2024; and WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the appropriations limit has been determined, and the adjustment factors on which the calculation is based are a 3.62% percent change in California per capita income and a 0.02% percent change in the population growth for the County of Santa Clara; and WHEREAS, the documentation used in the determination of the appropriations limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and WHEREAS, according to the final calculation, the City’s net appropriations subject to limitation are approximately $173.10 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 2025, 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 are under the appropriations limit by approximately $46.64 million. SECTION 2. The Council hereby adopts the final calculation of the appropriations limit of the City for Fiscal Year 2025, a copy of which is attached hereto as Exhibit 1. 1 Docusign Envelope ID: 01007953-C6CB-46BA-82BD-63E6C82F629F 2 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the Section 15378(b)(4) of California Environmental Quality Act Guidelines because establishing the annual appropriations limit is a fiscal activity, and, therefore, no environmental assessment is necessary. APPROVED: ___________________________ INTRODUCED AND PASSED: JUNE 17, 2024 AYES: BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, VEENKER NOES: TANAKA ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: _________________________ City Clerk Mayor APPROVED AS TO FORM: City Attorney City Manager Director of Administrative Services Docusign Envelope ID: 01007953-C6CB-46BA-82BD-63E6C82F629F Exhibit 1 FY 2025 Adopted Budget 306.63$ 135.13$ 23.08$ 12.00$ 476.84$ Less:Interfund Transfers (38.84)$ (7.42)$ (17.04)$ -$ (63.31)$ Allocated Charges (26.95)$ (0.34)$ (0.53)$ -$ (27.82)$ Non-Proceeds (63.74)$ (129.40)$ (7.32)$ (12.14)$ (212.60)$ Net Appropriations Subject to Limit 177.10$ (2.04)$ (1.81)$ (0.14)$ 173.10$ FY 2024 Per Capita Income Change (CA Department of Finance)3.62% Factor A 1.0362 FY 2024 Population Change (County of Santa Clara)0.02% Factor B 1.0002 212.02$ 1.0364 $219.74 Net Appropriations Subject to Limit 173.10$ Amount Under the Limit $46.64 2024*1.0444 0.9975 1.0418 212.02$ 157.94$ 54.08$ 2023*1.0755 1.0007 1.0763 203.52$ 138.39$ 65.13$ 2022*1.0573 0.9944 1.0514 189.10$ 127.09$ 62.01$ 2021 1.0373 1.0037 1.0411 179.86$ 113.06$ 66.80$ 2020 1.0385 1.0033 1.0419 172.75$ 127.42$ 45.33$ 2019 1.0367 1.0099 1.0470 165.80$ 114.94$ 50.86$ 2018 1.0369 1.0082 1.0454 158.36$ 131.49$ 26.87$ 2017 1.0537 1.0130 1.0674 151.49$ 109.51$ 41.98$ 2016 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.32$ 2015 0.9977 1.0150 1.0127 135.17$ 82.93$ 52.24$ 2014 1.0512 1.0157 1.0677 133.48$ 90.28$ 43.20$ * FY 2022-2024 Appropriation Limits restated to correct for Total Adjustment Factor calculation error in those fiscal years. APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR FISCAL YEAR 2025 ADOPTED BUDGET ($ IN MILLIONS) Total Budgeted Appropriations General Fund Capital Projects Funds Special Revenue Funds Debt Service Fund Combined Funds FY 2024 Adopted Appropriations Limit Factor A x Factor B FY 2025 Adopted Appropriations Limit 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. The City of Palo Alto remains well within its appropriations limit in FY 2025. 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 Per Capita Income Factor Population Change Factor Total Adjustment Factor Appropriations Limit Appropriations Subject to Limit Amount Under the Limit Docusign Envelope ID: 01007953-C6CB-46BA-82BD-63E6C82F629F Certificate Of Completion Envelope Id: 01007953C6CB46BA82BD63E6C82F629F Status: Completed Subject: Docusign: Resolution 10172 - Appropriations Limit Source Envelope: Document Pages: 3 Signatures: 5 Envelope Originator: Certificate Pages: 2 Initials: 0 Vinhloc Nguyen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Vinhloc.Nguyen@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 7/18/2024 9:31:50 AM Holder: Vinhloc Nguyen Vinhloc.Nguyen@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Molly Stump Molly.Stump@CityofPaloAlto.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 7/18/2024 9:35:39 AM Viewed: 7/18/2024 9:37:34 AM Signed: 7/18/2024 9:37:42 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lauren Lai lauren.lai@cityofpaloalto.org Director Administrative Services/CFO COPA Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 107.3.164.21 Sent: 7/18/2024 9:37:43 AM Viewed: 7/25/2024 7:25:08 AM Signed: 7/25/2024 7:25:24 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 7/25/2024 7:25:25 AM Viewed: 7/25/2024 11:48:18 AM Signed: 7/25/2024 11:48:51 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Greer Stone greer.stone@cityofpaloalto.org Vice Mayor Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 88.128.88.130 Sent: 7/25/2024 11:48:53 AM Viewed: 7/30/2024 12:59:08 AM Signed: 7/30/2024 12:59:19 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Mahealani Ah Yun Mahealani.AhYun@CityofPaloAlto.org City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 7/30/2024 12:59:20 AM Viewed: 7/31/2024 8:47:29 AM Signed: 7/31/2024 8:47:36 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Christine Prior christine.prior@cityofpaloalto.org Administrative Associate III Copa Security Level: Email, Account Authentication (None) Sent: 7/31/2024 8:47:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/18/2024 9:35:39 AM Certified Delivered Security Checked 7/31/2024 8:47:29 AM Signing Complete Security Checked 7/31/2024 8:47:36 AM Completed Security Checked 7/31/2024 8:47:37 AM Payment Events Status Timestamps