HomeMy WebLinkAbout1997-09-08 City Council (30)TO:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
AGENDA DATE: SEPTEMBER 8, 1997 CMR:362:~
SUBJECT:ADOPTION OF FINAL GANN LIMIT CALCULATION
RESOLUTION FOR 1997-98
REOUEST:
Staff recommends that Council adopt the attached resolution determining the Proposition 4
(Gann) Appropriations Limitation calculation for fiscal year 1997-98. The City’s fiscal year
1997-98 appropriations are $10.2 million under the limit.
EXECUTIVE SUMMARY:
Article 13B of the State Constitution (Proposition 4) limits the annual appropriations for the
State and local governments. Population and per capita income "change factors," which are
used to adjust the City’s annual appropriation limit, are received from the State after the
City’s budget has been submitted to Council. The appropriations limitation calculation.
approved by Council on June 23, 1997 was an estimate only. Attached is the final
appropriations limitation calculation, based on appropriations approved on June 23, 1997 and
on "change factors" received from the State. The City’s fiscal year 1997-98 appropriations
are $10.2 million under the limitation.
ATTACHMENTS:
Attachment A:Appropriations Limitation Compliance Calculation for Adopted 1997-
98 Budget
Attachment B:Resolution
CMR:362:97 Page 1 of 2
PREPARED BY: Joe Saccio, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL: ~ -
Melissa 12avallo
Acting Director,
Administrative Services
CITY MANAGER APPROVAL:
CC: n/a
, Emilio Harrison
Assistant City Manager
CMR:362:97 Page 2 of 2
ATTACHMENT A
APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR ADOPTED 1997-1998 BUDGET
($ in Millions)
Total Budgeted Appropriations
1997-98
Less:Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
Appropriations from Reserves
Net Appropriations
Subject to Limit
1997-98 Limit
Under Limit By
Combined General Capital Debt Special
Funds Fund Projects Service Revenue
$87.40 $76.60 $4.51 $2.49 $3.80
1.17 1.17
4.42 3.10 1.32
30.03 27.23 2.80
$51.78 $49.37 $1.41 $0.00 $1.00
$62.00
$10.22
Computation of Appropriation Limit:
1996-97 Appropriations Limit:
1997-98 Santa Clara County
Population Change
1997-98 Per Capita Income Change
$57,984,995
2.16%
4.67%
(1.0467) x (1.0216) x $57,984,995 = $62,003,861
ATTACHMENT B
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
1997-98
WHEREAS, under Article XIIfB 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
estimated calculation of the Limit was set forth in the annual
budget of the City for fiscal year 1997-98, which was adopted by
ordinance of the Council on June 23, 1997; and
WHEREAS, pursuant to Government Code Section 7910, ~he
final, calculation of the Limit has been determined, and the
adjustment factors on which the calculation is based are a +4.67
percent change in California Per Capita Income and a +2.16 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 the adoption of this resolution; and
WHEREAS, according to the final calculation, the City’s
appropriations subject to limitation is approximately $10.2 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
f±nds that, for fiscal year 1997-98, 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 $10.2
million.
SECTION 2~. The Council hereby adopts the final calculation
of the Appropriations Limit of the City for fiscal year 1997-98, a
copy of which is attached hereto as "Attachment A".
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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
Acting Director of
Administrative Services
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