HomeMy WebLinkAboutStaff Report 240-088 City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JUNE 9, 2008 CMR: 240:08
ADOPTION OF RESOLUTION DETERMINING THE
CALCULATION OF THE APPROPRIATIONS LIMIT FOR FISCAL
YEAR 2008-09
RECOMMENDATION
Staff recommends that Council adopt the attached resolution determining the Proposition
4 (Gann) Appropriations Limit calculation for Fiscal Year 2008-09. The City’s Fiscal
Year 2008-09 appropriations are estimated to be $34.48 million under the limit, assuming
Counci! approval of the Fiscal Year 2008-09 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 2008-09 is $113.17 million. When compared to the reco~r~nended 2008-
09 Budget, the City’s fiscal year 2008-09 budgeted appropriations are $34.48 million
under the Limit.
Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of
population ~ov~h, which are county or city population ~o’~h factors, in the Limit
calculation. For Fiscal Year 2008-09, 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.
CMR:240:08 Page 1 of 2
RESOURCE IMPACT
The adoption of the Fiscal Year 2008-09 Limit has no impact on City resources.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
ENVIRONMENTAL REVIEW
This is not a project under CEQA.
ATTACHMENTS
Attachment A:Resolution determining the calculation of the Appropriations
Limit for Fiscal Year 2008-09
PREPARED BY
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL"
Senior Financial Analvst /
Director. Administrativ,e.. Se~s
i/)(/"
Ii_,.---,. "__../dd.~.]~ jl -
STEVE EMSLIE’ I KEIALY MORARIU
Deputy Ci~, Managers
CMR:240:08 Page 2 of 2
Attachment A
***NOT YET APPROVED***
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ~TO DETER_MINING
THE CALCULATION OF THE APPROPRIATIONS LIMIT OF THE CITY OF
PALO ALTO FOR FISCAL YEAR 2008-09
WB.IEREAS, under Article X!i!B 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
~EREAS, since fisca! 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
calculation of the Limit and the tota! appropriations subject to
the limit were set forth in the annual budget of the City for
fiscal year 2008-09, which will be adopted by ordinance of the
Counci! on June 9, 2008; and
%~HEREAS, 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 4.29%
percent change in California per capita income and a 1.72% percent
change in the population growth for the County of Santa Clara; and
<%~EREAS, 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
~EREAS, according to the final calculation, the City’s
appropriations subject to limitation are approximately $34.48
million less than the Limit.
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as fol!ows:
SECTION i. The Council of the City of Palo Alto hereby
finds that, for fisca! year 2008-09, 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 genera! public for the period of fifteen days
as required by law, and the City’s appropriations subject to
limitation are under the Limit by approximately $34.48 million.
SECTION 2. The Council hereby adopts the final calculation
of the Appropriations Limit of the City for fiscal year 2008-09, a
copy of which is attached hereto as Exhibit A.
SECTION 3. The Counci! finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act,and,therefore,no environmental
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Senior Assistant City Attorney
City Manager
Director, Administrative
Services
Exhibit A
APPROPRIATIONS LIMITATION
COMPLIANCE CALCULATION
FOR 2008-09 ADOPTED BUDGET
($ IN MILLIONS)
Total Budgeted Appropriations
2008-09 Adopted Budget (Smillions)
Less:Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
Net Proposed Appropriations Subject to Limit
Combined
Funds
142.55
1.22
16.10
46.55
78.69
General
Fund
116.59
42.18
74.41
Capital
Projects
16.10
16.!0
Debt
Service
1.22
1.22
Special
Revenue
8.65
4.37
4.28
Computation of Appropriation Limit:
2007-08 Appropriations Limit:
2008-09 Santa Clara County
Population Change
2008-09 Per Capita Income Change
(1.0172) x (1.0429) × $106,683,316 =
S 106,683,316
1.72%
4.29%
$113,173,703
The City of Palo Alto remains well within its appropriations limit in 2008-09. 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, Special Revenue Funds, Debt Service Funds, and Capital Improvement Funds. The following is a
summary of estimated limits and estimated appropriations subject to the limit.
Historical Appropriations
Appropriations Subject to the Limit
Appropriations Limit
Under Limit By
Projected Appropriations
Estimated Appropriations Subject to Limit
Estimated Appropriations Limit
Under Limit By
2004-05 2005-06 2006-07 2007-08 2008-09
64.13 65.87 70.45 73,30 78.69
89.27 95.68 100.64 106.68 113.17
25.14 29.81 30.19 33.38 34.48
2009-10 2010-11 2011-12 2012-13 2013-14
84.99 91.79 99.13 107.06 115.62
120.36 128.00 136.13 144.78 153.97
35.37 36.22 37.00 37.72 38.35