HomeMy WebLinkAbout2003-08-04 City Council (18)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:AUGUST 4, 2003 CMR: 395:03
SUBJECT:UPDATED CALCULATION FOR FISCAL
APPROPRIATIONS LIMIT
YEAR 2003-04
This is an informational report and no Council action is required.
BACKGROUND
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." On June 16,
2003, the Palo Alto City Council adopted Resolution 8312, "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 2003-04." The City’s appropriation subject to the limitation
was approximated to be $22.28 million under the limit.
DISCUSSION
To reflect changes made by City Council to the 2003-04 Proposed Budget on June 16,
2003, the City’s appropriations were re-calculated to be $24.48 million under the City’s
appropriation limit for 2003-04.
ATTACHMENTS
Attachment A:Appropriations Limitation Calculation for fiscal year 2003-04
CMR:395:03 Page I of 2
PREPARED BY:
STEPHEN LIEN
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL YEATS//"
Director, Adi~nistrative Services
CITY MANAGER APPROVAL:
EMIL-~-’-HARRISON "
Assistant City Manager
CMR:395:03 Page 2 of 2
2003-04 Appropriations Limitation
COMPLIANCE CALCULATION ($Millions)Combined General Capital Debt Special
Funds Fund Projects Service Revenue
TOTAL BUDGETED APPROPRIATIONS
2003-04 Adopted Budget ($ millions)
Less: Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
109.78 99.88 4.16 1.42
1.42 1.42
7.49 7.49
39.54 35.42
Net Adopted ~pprop~tions Subject to Limit $61.33 $64.46 $(3.33)$0
2003-04 Appropriations Limit
UNDER LIMIT BY
85.82
$24.48
COMPUTATION OF APPROPRIATION LIMIT
4.32
6.52
$(2.20)
2002-03 Appropriations Limit
2003-04 Santa Clara County Population Change
2003-04 Per Capita Income Change
(1.008) x (1.0231) x $83,213,394 =
$83,213,394
0.80%
2.31%
$85,816,708
The City of Palo Alto remains well within its appropriations limit in 2003-04. Future year limit trends can be made based on aver-
age change in regional population and income growth. The following is a summary of estimated limits and estimated appropriations
subject to the limit. It indicates a slight decline in the amount Palo Alto’s budgeted appropriations are projected to be under the esti-
mated limit.
Historical Appropriations
Appropriations Subject to the Limit
Appropriations Limit
Under Limit By
1999-00 2000-01 2001-02 2002-03 2003~4
57.44 64.19 71.66 65.96 61.33
70.13 74.77 83.24 83.21 85.82
$12.69 $10.58 $11.58 $17.25 $24.48
Projected Appropriations
Appropriations Subject to the Limit
Appropriations Limit
Under Limit By
2004-05 2005-06 2006-07 2007-08 2008~9
66.24 71.54 77.26 83.45 90.12
91.27 97.06 103.22 109.78 116.75
$25.02 $25.52 $25.96 $26~3 $26.63
2003-0.5 Budget City of Palo Alto 505