HomeMy WebLinkAbout2000-06-19 City Council (14)TO:
FROM:
BUDGET
’00-’01
City of Palo Alto
C ty Manager’’s port
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JUNE 19, 2000 CMR: 285:00
ADOPTION OF FINAL APPROPRIATION LIMIT CALCULATION
RESOLUTION FOR 2000-01
RECOMMENDATION
Staff recommends that Council adopt the attached resolution determining the Proposition
4 (Gann)Appropriations Limit for fiscal year 2000-01.
DISCUSSION
Article XIIIB of the State Constitution (Proposition 4) limits the annual appropriations
for the State al~d 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. Whencompared to the
recommended 2000-01 Budget, the City’s fiscal year 2000-01 appropriations are $10.58
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 0fthese materials.
RESOURCE IMPACT
The adoption of the 2000-01 Appropriations Limit has no effect on City resources
because the proposed 2000-01 budget is below the Limit.
POLICY IMPLICATIONS
This recommendation is cofisistent with existing City policies.
CMR: 285:00 Page 1 of 2
ATTACHMENTS
Attachment A:Resolution determining the calculation of the Appropriations
Limit for fiscal year 2000-01
PREPARED BYi Steven Montano, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
CARL YEATS
Director,Services
CITY MANAGER APPROVAL:
EMI’t~ H~,RIS(~N
Assistant City Manager
CMR: 285:00 Page 2 of 2
RESOLHTION 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 2000-01
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 2000-01, which was adopted by ordinance of the
Council on June 19, 2000; and
WHEREAS, pursuant to Government Code Section 7910, the final
calculation of the Limit has been determined, and the adjustment
factors on which the calculation is based are a 4.91% percent
change in California Per CapitaIncome and a 1.63%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 $10.58
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 fiscalyear 2000-01, 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 $10.58 million.
SECTION 2. The Council hereby adopts, the final calculation
of the ApproPriations Limit of the City for fiscal year 2000-01, a
copy of which is attached hereto as "Exhibit A".
SECTION 3. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act,and,therefore,no environmental
assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Sr. Assistant City Attorney
City Manager
Director, Administrative
Services
2
ESTIMATED APPROPRIATIONS LIMITATION
COMPLIANCE CALCULATION FOR ADOPTED 2000-01 BUDGET
($ IN MILLIONS)
Combined General Capital Special
Funds Fund Projects Debt Service Revenue
TOTAL BUDGETED APPROPRIATIONS
2000-01 Proposed Budget ($ millions)
Less: Debt Service Transactions
Capital Outlay
Non-Proceeds of Taxes
Net Proposed Appropriations Subject to Limit
2000-01 Appropriations Limit
Under Limit By
108.31 92.87
2.80
5.25
36.07 30.45
$ 64.19 $ 62.42
7.10
5.25
2.82
2.80
$1.85 $ o.o2
$ 74.77
$ lO.58
5.52
5.61
$ (0.10)
COMPUTATION OF APPROPRIATION LIMIT
1999-00 Appropriations Limit:
2000-01 Santa Clara County Population Change
2000-01 Per Capita Income Change
2000-01 Appropriations Limit Calculation
(1.0163) x (1.0~91) x $70,125,958 =
$70,125,958
1.63%
4.91%
$74,768,320
The City of Palo Alto remains well within its appropriations limit in 2000-01. Future year limit trends can be made based on
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
Under Limit By
1996-97 1997-981 1998-99 199940 2000-01
45.21 51.78 53.21 57.44 64.19
57.98 62.00 65.95 70.13 74.77.
$12.77 $10.22 $12.74 $12.69 $10.58
Projected Appropriations
Estimated Appropriations Subject to Limit
Estimated Appropriations Limit
Under Limit By
2001-02 2002-03
68.69 74.19
79.31 84.34
$10.61 $10.15
200344
80.12
89.70
$9.58
2004-05
86.53
95.39
$8.86
529