HomeMy WebLinkAbout1998-06-22 City Council (14)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JUNE 22, 1998 CMR:277:98
ADOPTION OF FINAL APPROPRIATION LIMIT CALCULATION
RESOLUTION FOR 1998-99
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution determining the Proposition
4 (Gann) Appropriations Limit calculation for fiscal year 1998-99. The City’s fiscal year
1998-99 appropriations are $12.7 million under the limit.
DISCUSSION
Article XIIIB of the State Constitution (Proposition 4) limits the annual appropriations for
the State and local governments. The Appropriations limit (Limit) is adjusted annually on
the basis of population-and per capita income "change factors." These factors are received
from theState in May, after the City’s proposed budget has been submitted to Council.
Attached is the final Limit calculation (Attachment 1), based on the "change factors" which
have been received from the State. The City’s fiscal year 1998-99 Budget appropriations are
$12.7 million under the Appropriations Limit.
As required by State law, documentation used to compute the Limit has been made available
to the public at least fifteen days prior to the Council meeting at which the Limit is being
adopted, and notice was published of the availability of these materials.
RESOURCE IMPACT
The adoption of the 1998-99 Limit has no effect on City resources, because the Proposed
1998-99 Budget is below the Limit.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
CMR:277:98 Page 1 of 2
ENVIRONMENTAL REVIEW
No environmental assessment is necessary because this action is not a project under the
California Environmental Quality Act (CEQA).
ATTACHMENT
Resolution determining the calculation of the Appropriations Limit for fiscal year 1998-99
PREPARED BY: Linda Craig, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL YEAT~y/
Director, Adrrlinistrative Services
CITY MANAGER APPROVAL:
Manager
CC: n!a
CMR:277:98 Page 2 of 2
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
DETERMINING THE CALCULATION OF THE APPROPRIATIONS
LIMIT OF THE CITY OF PALO ALTO FOR FISCAL YEAR
1998-99
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 ("Limit"); and
WHEREAS, since 1990-91, 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 was set forth in the annual budget of the
City for~fiscal year 1998-99, which was adopted by ordinance of the
Council on June 22, 1998; and
WHEREAS, pursuant to Government Code Section 7910, the
final calculation of the Limit has been determined, and the
adjustment factors on which the calculation is based are a 4.15
percent change in California Per Capita Income and a 2.12 percent
change in the population growth of the County of Santa Clara; 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 of this resolution; and
WHEREAS, according to the final calculation, the City’s
appropriations subject to limitation is approximately $12.7 million
less than the Limit;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION I. The Council of the City of Palo Alto hereby
finds that, for fiscal year 1998-99, 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 has not exceeded the Limit by approximately $12.7
million.
SECTIQN 2, The Council hereby adopts the final calculation
of the Appropriations Limit of the City for fiscal year 1998-99, a
copy of which is attached hereto as "Exhibit A".
9H0610 lac 00319~3
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:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Senior Asst. City Attorney
City Manager
Director of Administrative
Services
EXHIBIT A
APPROPRIATIONS LIMITATION
COMPLIANCE CALCULATION
FOR ADOPTED 1998-99 BUDGET
( $ IN MILLIONS)
Total Budgeted Appropriations
1998-99 Budget
Less:Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
Appropriations from Reserves
Combined
Funds
91.89
1.40
5.26
31.79
0.23
Net Appropriations
Subject to Limit $53.21
General Capital Debt Special
Fund Projects Service Revenue
81.39 4.76 2.67 3.07
0 0 1.40 0
0 3.99 1.27 0
29.01 0 0 2.78
0.23 0 0 0
$52.15 $0.77 $0.00 $0.29
Computation of Appropriations Limit:
1997-98 Appropriations Limit
1998-99 Santa Clara County
Population Change
1998-99 Per Capita Income Change
$62,003,861
2.12%
4.15%
(1.0415) x (1.0212) x 62,003,861 = 66,946,054
06/05/98
$65,946,054