HomeMy WebLinkAbout2002-06-17 City Council (14)TO:
FROM:
DATE:
SUBJECT:
BUDGET
’02-’03 City of Palo Alto
City Manager’s Report
4HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
JUNE 17, 2002 CMR: 277:02
ADOPTION OF FINAL APPROPRIATION LIMIT CALCULATION
RESOLUTION FOR 2002-03
RECOMMENDATION
Staff recommends that Council adopt the attached resolution determining the Proposition
4 (Gann) Appropriations Limit calculation for fiscal year 2002-03.
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 final calculated Appropriations Limit for fiscal year 2002-03 is $83.21 million. The
appropriation subject to this limit for 2002-03 is estimated to be $65.96 million. When
¯ compared to the Adopted 2002-03 Budget, :the City’s fiscal year 2002-03 appropriation is
$17.25 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 2002-03 Appropriations Limit has no effect on City resources
because the proposed 2002-03 budget is below the Limit. ’
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
CMR:277:02 Page 1 of 2
ATTACHMENTS
Attachment A:Resolution determining the calculation of the Appropriations
Limit for fiscal year 2002-03
STEPt~EN LIEN
Senior Financial Analyst
DEPARTMENT HEAD APPROVAL: . CARL
Director, Cdmir~strative
CITY MANAGER. APPROVAL:
~~~ ~ r~.~SON
Assistant City Manager
Services
CMR:277:02 Page 2 of 2
ATTACHMENT A
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 2002-03
WHEREAS, under Article XIIIB of the Constitutionof 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 2002-03, which was adopted by ordinance of the
Council on June 17, 2002; 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 -1.27%
percent change in California per capita income and a 1.25% pe~cen~
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 are approximately $17.25
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 2002-03, 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 $17.25 million.
SECTION 2. The Council herebyadopts the final calculation
of the Appropriations Limit of the City for fiscal year 2002-03, a
copy of which is attached hereto as Exhibit A-.
SECTION 3. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act,and,therefore,no environmental
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:.-
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Sr. Assistant. City Attorney
City Manager
Director, Administrative
Services
APPROPRIATIONS LIMITATION
COMPLIANCE CALCULATION
FOR 2002-03 APPROVED BUDGET
($ IN MILLIONS)
Total Budgeted Appropriations
2002-03 Approved Budget ($millions)
Less:Debt Service Trar~sactions
Capital Outlay
Non-Proceeds of Taxes
Net Proposed Appropriations Subject to Limit
Combined
Funds
117.47
2.31
5.97
43.23
65.96
104.60
38.88
65.72
6.09
5,97
0,12
2,31
2.31
General
Fund
Capital
Proiects
Debt
Service
Special
Revenue
4,47
4.35
0.12
Computation of Appropriation Limit:
2001-02 Appropriations Limit:$ 83,243,258
2002-03 Santa Clara County
Population Change 1,25%
2002-03 Per Capita Income Change -1.27%
(1.0125) x (.9873)x $83,243,258 =$83,213,394
The City of Palo Alto remains well within its appi’opriations limit in 2002-03, Future year limit trends can be made based on the
average 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 estimated limit,
Historical Appropriations
Appropriations Subject to the Limit
Appropriations Limit
Unde[ Limit By
1998-99 1999-00 2000-01 2001-02 2002-03
53.21 57,44 64,19 71,66 65,96
65,95 70,13 .74,77 81,80 83,21
12.74 12,69 10,58 10,14 17,25
Projected Appropriations
Estimated Appropriation~ Subject to Limit
Estimated Appropriations Limit
Under Limit By
2003-04 2004-05 2005-06 2006-071 2007-08
71.24 76,94 83,09 89,74 96,92
88,50 94.12 100.09 106.45 113.21
17.26 17.18 17.00 ’16.71 16,29
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