HomeMy WebLinkAbout2004-06-28 City Council (15)BUDGET
’04-’05 City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL 3
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JUNE 28, 2004 CMR: 317:04
SUBJECT:ADOPTION OF PROPOSED APPROPRIATION
CALCULATION RESOLUTION FOR 2004-05
LIMIT
RECOMMENDATION
Staff recommends that Council adopt the attached resolution determining the Proposition
4 (Gann) Appropriations Limit calculation for fiscal year 2004-05. The City’s fiscal year
2004-05 appropriations are estimated to be $25.14 million under the limit, assuming
Council Approval of the 2004-05 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 2004-05 is $89.27 million. When compared to the recommended 2004-05
Budget, the City’s fiscal year 2004-05 budgeted appropriations are $25.14 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 2004-05, 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:317:04 Page 1 of 2
RESOURCE IMPACT
The adoption of the 2004-05 Limit has no impact on City resources.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
ATTACHMENTS
Attachment A:
PREPARED BY:
Resolution determining the calculation of the Appropriations
Limit for fiscal year 2004-05
STEPHEN LIEN
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL ~AT~~ecRtLtor,Y~ministrati ices
CITY MANAGER APPROVAL:
EMII~Y HARRISON
Assistant City Manager
CMR:317:04 Page 2 of 2
***NOT YET APPROVED***
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 2004-05
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 2004-05, which will be adopted by ordinance of
the Council on June 28, 2004; and
WHEREAS, pursuant to Government Code sections 7901 and 7910,
the fina! calculation of the Limit has been determined, and the
adjustment factors on which the calculation is based are a 3.28~
percent change in California per capita income and a 0.72% 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 $25.14
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 2004-05, 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 are under the Limit by approximately $25.14 million.
SECTION 2.The Council hereby adopts the final calculation
of the Appropriations Limit of the City for fiscal year 2004-05, a
copy of which is attached hereto as Exhibit A.
SECTION 3.
resolution does not constitute a project under
Environmental Quality Act,and,therefore,
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
The Council finds that the adoption of this
the California
no environmental
City Clerk Mayor
APPROVED AS TO FORM:
City Attorney
City Manager
Director, Administrative
Services