HomeMy WebLinkAboutStaff Report 269-07BUDGET
’07-’09
City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
8
DATE:
SUBJECT:
JUNE 11, 2007 C~MR: 269:07
ADOPTION OF PROPOSED APPROPRIATION LIMIT CALCULATION
RESOLUTION FOR FISCAL YEAR 2007-08
RECOMMENDATION
Staff recommends that Council adopt the attached resolution determining the Proposition 4
(Gann) Appropriations Limit calculation for fiscal year 2007-08. The City’s fiscal year 2007-08
appropriations are estimated to be $33.38 million under the limit, assuming Council approval of
the fiscal year 2007-08 Adopted Budget.
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. The Appropriations Limit for fiscal year 2007-08 is $106.68 million. When compared to
the recommended 2007-08 Budget, the City’s fiscal year 2007-08 budgeted appropriations are
$33.38 million under the Limit.
Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of
population growth, county or city population growth factor, in the Limit calculation. For fiscal
year 2007-08, the City is using the population factor for Santa Clara County, which is greater
than the population factor for the City of Palo Alto.
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 fiscal year 2007-08 Limit has no impact on City resources.
CMR:269:07 Page 1 of 2
POLICY IMPLICATIONS
PREPAREDThis recommendatiOnBy: is~th~ ’~’~ B~[ Aexisting City ..p~licies’
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL
Director,Services
CITY MANAGER APPROVAL:
EMILY H~RRISON
Assistant City Manager
ATTACHMENTS
Attachment A: Resolution determining the calculation of the Appropriations
Limit for fiscal year 2007-08
CMR:269:07 Page 2 of 2
ATTACHMENT A
*NOT YET APPROVED*
RESOLUTION NO
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO DETERMINING THE CALCULATION OF THE
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2007-08
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 fiscal year 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 calculatlon of the Limit and the total appropriations
subject to the limit were set forth in the annual budget of
the City for fiscal year 2007-08, which will be adopted by
ordinance of the Council on June ii, 2007; 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 4.42% percent change in
California per capita income and a 1.52% percent change in
the population growth for 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 are
approximately $33.38 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 2007-08, 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
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***NOT YET APPROVED*~
the general public for the perlod of fifteen days as
required by law, and the City’s appropriations subject to
limitation are under the Limit by approximately $33.38
million.
SECTION 2. The Council hereby adopts the final
calculation of the Appropriations Limit of the City for
fiscal year 2007-08, 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:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Mayor
City Manager
Senior Asst City Attorney Director of
Administrative Services
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