HomeMy WebLinkAbout1999-06-21 City Council (13)TO:
ATTN:
City
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
City of Palo Alto
Manager’s Report
4
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JUNE 28, 1999 CMR: 290:99
SUBJECT:ADOPTION OF FINAL APPROPRIATION LIMIT CALCULATION
RESOLUTION FOR 1999-00
RECOMMENDATION
Staffrecommends that the Council adopt the attached resolution determining the Proposition
4 (Gann) Appropriations Limit calculation for Fiscal Year 1999-00. The City’s Fiscal Year
1999-00 appropriations are $12.69 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 the State in May after the City’s proposed budget has been submitted to Council.
Attached is the final Appropriations Limit calculation, based on the "change factors" which
have been received from the State. When compared to the recommended 1999-01 Budget,
the City’s Fiscal Year 1999-00 appropriations are $12.69 million under the 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 1999-00 Appropriations Limit has no effect on City resources because
the Proposed 1999-00 Budget is below the Limit.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
CMR:290:99 Page 1 of 2
ATTACHMENTS
Attachment A:Resolution determining the calculation of the Appropriations
Limit for fiscal year 1999-00
PREPARED BY: Steven Montano, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL YEATS
Director,Services
CITY MANAGER APPROVAL:
Manager
CMR:290:99 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
1999-00
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 fisca! year 1999-00, which was adopted by ordinance of the
Council on June 28, 1999; 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 4.53
percent change in California Per Capita Income and a 1.73 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 $12.69
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 1999-00, 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 $12.69
million.
SECTION 2 The Council hereby adopts the final calculation
of the Appropriations Limit of the City for fiscal year 1999-00, a
copy of which is attached hereto as "Exhibit A".
990616 sdl 0032171 1
SECTION 3. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act,and,therefore,no environmental
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Senior Asst. City Attorney
City Manager
Director of Administrative
Services
990616 sdl 0032171 2
ESTIMATED APPROPRIATIONS LIMITATION
COMPLIANCE CALCULATION
FOR 1999-00 PROPOSED BUDGET
($ IN MILLIONS)
Total Budgeted Appropriations
1999-00 Proposed Budget ($ millions)
Less:Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
Net Proposed Appropriations Subject to Limit
Combined
Funds
101.91
2.80
5.39
36.29
57.43
General
Fund
87.37
31.72
55.65
Capital
Projects
Debt
Service
Special
Revenue
6.45 2.80 5.29
2.80
5.39
1.06
4.57
0.72
Computation of Appropriation Limit:
1998-99 Appropriations Limit:
1999-00 Santa Clara County
Population Change
1999-00 Per Capita Income Change
(1.0173) x (1.0453) x $65,946,054 =
$ 65,946,054
1.73%
4.53%
$ 70,125,958
s:/asdibudget/steve/9901budg/special revs/GANN calculation.xls-Summary t0:12 AM, 6/9/99