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HomeMy WebLinkAbout2001-06-11 City Council (4)TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES 9 DATE: SUBJECT: JUNE 11, 2001 CMR: 270:01 ADOPTION OF FINAL APPROPRIATION CALCULATION RESOLUTION FOR 2001-02 LIMIT RECOMMENDATION Staff recommends that Council adopt the attached resolution determining the Proposition 4 (Gann) Appropriations Limit calculation for fiscal year 2001-02. The City’s fiscal year 2001-02 appropriations are $10.14 million under the limit. DISCUSSION Article XlIIB 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. When compared to the recommended 2001-02 Budget, the City’s fiscal year 2001-02 appropriations are $10.14 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 2001-02 Appropriations Limit has no effect on City resources because the proposed 2001-02 budget is below the Limit. POLICY IMPLICATIONS This recommendation is consistent with existing City policies. CMR:270:01 Page 1 of 2 ATTACHMENTS Attachment A:Resolution determining the calculation of the Appropriations Limit for fiscal year 2001-02 PREPARED BY: STEVEN MONTANO Senior Financial Analyst DEPARTMENT HEAD APPROVAL: CARL YEATS Director,Services CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR:270:01 Page 2 of 2 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 2001-02 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 2001-02, which, was adopted by ordinance of the Council on June ii, 2001; 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 7.82% percent change in California per capita income and a 1.47% percent 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 $10.14 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 2001-02, 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 $10.14 million. SECTION 2. The Council hereby adopts the final calculation of the Appropriations Limit of the City for fiscal year 2001-02, 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