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Home My WebLink AboutStaff Report 2.A 02/02/2004', C C CCTV OF PVTA1.11MA_ CALiFhRNiA AGENDA BILL . Feb ruar y 2, 20 , Agenda Title Resolution Amending Resolution No. 2002429 and Meeting Date: February 2, 2004 Resolution No. 2003 =128 Setting the Appropriations Limits for Fiscal Years 2003 and 2004 Meetina. Time Z 3:00 PM 0 7:00 PM Cateaory (check one ❑ Consent Calendar Z Public ,Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department Director Contact Person Phone Number Finance William Thomas William Thomas. 778 -4323 Cost of Proposal n/a Account Number n/a Amount Budgeted n/a Name of Fund All Funds Attachments to Agenda Packet Item 1. Resolution 2. Revised GANN Limitation Calculation Worksheets Summary Statement: Under- the provisions of State law, the City is required to set an annual appropriations limit. This limit is based on appropriations that are proceeds from taxes, as defined by law. The limit amount may be increased (decreased) by the applications of annual adjustment factors. The City m pl utilizes the 'change in population' and the 'change in per - capita income' as the factors. Both of these factors are provided to the City by the State Department of Finance,. In FY 2003, the City used incorrect. figures to calculate, -the change in population. Additionally, there was an 'adding' error in the. worksheets, Both of these caused the "Appropriations Limit" to be misstated. The population increase that was used was 0.40 %. The correct increse was 1.26 %. This caused the Appropriations Limit to be understated. The. other error was a formula error in the GANN worksheet that 'added' and number instead of 'subtracting' the - number. - This resulted in an 'overstatement' of interest earned by taxes by $101,672. This in'tunn, overstated the proceeds of taxes and finally resulted in an overstatement of the "Approrpriations,, Subject to Limitation" Both of these errors have been corrected and'I have provided a'revised' set of worksheets for both FY 2003 and FY 2004. Based on those changes, the resulting Appropriations Limits are $84,748 in FY 2003 and $87,152,662 in FY, 2004. The City remains significantly under the Appropriations Llinit. Iii FY 2004, the City is $67,649;440 under''the appropriation limit. Recommended. City Council - Action /Suggested Motion Adopt the Resolution Reviewed by Finance Director Reviewed by City Attorney Date: A roved Manager: Date: Date: �^ w M Today's Date Revision 4 and Date - Revised : File Cod in RESOLUTION Resolution Amending Resolution No, 2002 -129 and Resolution No. 2003 -128 Setting the Appropriations Limits'for Fiscal Years 2002 — 2003 and 2003 — 2004' WHEREAS, Resolution No. 2002- 120 incorrectly set the Appropriations Limit at $84,028,661; and, WHEREAS Resolution No. 2003 -128 incorrectly set the Appropriations Limit at $87,152,662; and, WHEREAS Section 7010 of the Governinent Code requires cities to adopt a resolution setting the annual appropriations limit; and, WHEREAS, the City of Petaluma had complied with the provisions of Article XIII -B in setting these appropriation limits; and WHEREAS, subsequent to setting those appropriations limit, it was discovered that an error had occurred. in calculating the fiscal year.2003 appropriations limit and appropriations subject to limitation; and, WHEREAS, that error cause a mis -calculation of the FY 2004 appropriations limit. NOW, THEREFORE,, BE IT RESOLVED by the City Council of the City of Petaluma that: 1. Resolution No. 20:02 -129 setting the Appropriations Limit for FY 2002 — 2003 is amended so that the FY 2002 — 2003 Appropriations Limit is changed from $84,028,661 to $84,748,428. 2. Resolution. No. 2003'128 setting the: Appropriations Limit for FY 2003 — 2004 is amended so that the.FY 2003 — 2004 Appropriations Limit is changed from $86,412,476 to $87,152,662.. 3. Resolution No. 2002 -120 settiing, the, Appropriations Subject to Limitation for FY 2002 —2003 is'amended from $47;446,756 to 17,318,099. CITY OF PETALUMA, CA i FISCAL YEAR 2003 GANN CALCULATIONS BASSI), ON FISCAL YEAR 2003 ADOPTED BUDGET WORKSHEET #2 - CALCULATION OF PROCEEDS OF TAXES Interest Earnings (Worksheet Three) Total Revenue Reserve Withdrawals Non - Proceeds of Taxes $ 4,113,000 1,253,000 65,000 5,235,400 290,000 3,025,650 451,800 285,00.0 3,541,750 3,558,750 934,200 22,753,550 614,310 '222,490 19,067,260; 22,976,040 Total 19,724,250 2,755,000 1,000 1,253,000 85,700 65,000 5,235,400 290,000 3,025,650 451,800 285,000 3,541,750 3,558,750 934,200 41,206,500 836,800 42,043,300 Total of These Funds 19,067,260 22,976,040 42,043,300 Enterprise'Fun'ds - 26,640,200 26 Grand Total - Adopted - Budget 19,067;260 $ 49,616,240 $ 68,683,500 • Proceeds of REVENUE Taxes Taxes $ 15,611 Subventions from State Motor Vehicle In Lieu 2,755 Off Highway 1,000 Gas Tax - Homeowner's Relief 85,700 SB 90 Reimbursements - Other Intergovernmental - Locally Raised Special Benefit- Landscape Assessments - Licenses and Permits - Fines, Forfeiture and Penalties - Rents - Charges for Services - User Fees (Worksheet One) - Other Miscellaneous - SubTotal 18,452,950 Interest Earnings (Worksheet Three) Total Revenue Reserve Withdrawals Non - Proceeds of Taxes $ 4,113,000 1,253,000 65,000 5,235,400 290,000 3,025,650 451,800 285,00.0 3,541,750 3,558,750 934,200 22,753,550 614,310 '222,490 19,067,260; 22,976,040 Total 19,724,250 2,755,000 1,000 1,253,000 85,700 65,000 5,235,400 290,000 3,025,650 451,800 285,000 3,541,750 3,558,750 934,200 41,206,500 836,800 42,043,300 Total of These Funds 19,067,260 22,976,040 42,043,300 Enterprise'Fun'ds - 26,640,200 26 Grand Total - Adopted - Budget 19,067;260 $ 49,616,240 $ 68,683,500 • CITY OF PETALUMA, CA FISCAL YEAR 2003 GANN CALCULATIONS BASED ON FISCAL YEAR 2003 ADOPTED, BUDGET' WORKSHEET #3 - INTEREST EARNINGS PRODUCED BY TAXES • Amount Source A. Non- Interest Tax Proceeds $ 18,452,950 Worksheet # 2 B. Minus Exclusions 1,749,161 Worksheet # 7 C. Net Invested Taxes 1 6,703,789 ( A -B ) D. Total Non - Interest Budget 22,753,550 Worksheet # 2 E. Tax Proceeds as % of Budget 73.41 % ( CID ) F. Interest Earnings 836,800 Budget G. Amount of Interest Earned from Taxes $ 614,310 (E *F ) H. Amount of Interest Earned from Non -Taxes $ 222,490 (F -G ) • CI'T'Y OF PETALUMA, CA FISCAL; YEAR 2003 GANN CALCULATIONS 1 • BASED. ON FISCAL YEAR 2003 ADOPTED BUDGET WORKSHEET #4 APPROPRIATIONS' SUBJECT TO LIMI'PATION Amount Source A. Proceeds of Taxes $' 19,067,260 Worksheet # 2 B. Exclusions 1,749,10 Worksheet # 7 C. Appropriations Subject to. Limitation 17,318,099 (A -B ) D. Current Year Limitation E. Over /(Under) Limit 84,748,428 $ (67,43.0,329 Worksheet # 6 (C -D). CITY OF PETALUMA, CA FISCAL YEAR 2003 GANN CALCULATIONS BASED ON FISCAL YEAR 2003 ADOPTED BUDGET WORKSHEET #5 - APPROPRIATIONS LIMIT Amount Source. A. Last Year's Limit $' 84,770,470 Adopted Budget B. Adjustment Factors 1. Growth in City of Petaluma population 1.0126 State Finance 2. Growth in California Per Capita Income 0.9873 State .Finance Total Adjustment % 0.9997 (BI-* 132 ) C. Annual Adjustment $ (22,042 (B' *A) D. Other Adjustments Lost Responsibility ( -) - Transfer to Private ( -) - Transfer to Fees { -) _ Assumed .Responsibility SubTotal _ E. Total Adjustments (22,042 ( C +D ) F. This Year's Limit $ 84,748,428 ( A +E) • ..n CITY OF PJETALUMA, CA FISCAL. YEAR 2003 GANN CALCULATIONS 4 BASED- ON FISCAL YEAR 2003 ADOPTED BUDGET WORKSHEET #6 - APPROPRIATIONS LIMIT ANALYSIS FY 200.1 -2002 Appropriations Limit $" 84,770,470 Adjustment Factors Change in Per Capita Personal Income (FY,2002- 2003) 0.9873 City Population Increase January 2001 to January 2002 1.0126 Factor for Fiscal Year 2001 -2002 0.9997 FY 2002 -2003 Appropriations -Limit $ 84,748,428 FY 2002 -2003 Proceeds of Taxes 19,067,260 Exclusion (1,740;161) FY 2002 -2003 Appropriations Subject to Limit 17,318,099 FY 2002 -2003 Appropriations Und& L_ imit $ 67,430,329 CI'T'Y OF PETAL.UMA, CA FISCAL YEAR 2003 GANN CALCULATIONS BASED ON FISCAL YEAR 2003 ADOPTED BUDGET WORKSHEET #7 EXCLUSIONS TO APPROPRIATIONS LIMIT COURT ORDERS $ - FEDERAL MANDATES FLSA.Payments - Medicare Payments 222,258 Landfill.Closure Costs 3,000 Underground Tank Monitoring - Unemployemnt Payments 10 TOTAL FEDERAL MANDATES 236,223 QUALIFIED CAPITAL OUTLAYS COP - 'Street Lights, Police Facility Community Center 500,693 Financing Leases 1,012;245 1,512,938 QUALIFIED DEBT SERVICE - TOTAL EXCLUDED APPROPRIATIONS $ 1,749,161 14 CALCULATIONS OF PROCEEDS OF' TAXES FY 2004 GANN CALCULATIONS '(Revised) Total Revenue 22,051;812 20,817,888 42,869,700 Reserve Withdrawals - - - Total of These Funds 22,051;812 20,817,888 42,869,700 Enterprise Funds - 29,126,800 29,126,800 Grand Total = Adopted' Budget $ 22;,051;812; $ 49,944,6.88 $ 71,996;500 • Proceeds of Non- Proceeds Total REVENUE Taxes' of Taxes Taxes $ 18,051,700 $ 1,825,200 $ 19,876,900 Subventions from State - Motor Vehicle In Lieu 3,120,650 - 3,120,650 Off Highway 750 - 750 Gas Tax - 1,335,000 1,335,000 Homeowner's Relief 90,800 - 90,800 SIB 90 Reimbursements - - - Other Intergovernmental - 6,048,300 6,048,300 Locally Raised - Special Benefit- Lan dscape,Assessments - 292,400 292,400 Licenses and Permits - 1,852,720 1,852,720 Fines, Forfeiture and Penalties - 486,300 486,300 Rents - 291,050 291,050 Charges for Services - 5,360,950 5,360,950 User Fees - 2,810,930 2,810,930 Other Miscellaneous - 610,950 610,950 SubTotal 21,263,900 20,913,800 42,177,700 Interest Earnings 787,912 (95,912) 692,000 Total Revenue 22,051;812 20,817,888 42,869,700 Reserve Withdrawals - - - Total of These Funds 22,051;812 20,817,888 42,869,700 Enterprise Funds - 29,126,800 29,126,800 Grand Total = Adopted' Budget $ 22;,051;812; $ 49,944,6.88 $ 71,996;500 • G APPRO:PRIATI`ONS SUBJECT TO LIMITATION FY 2,003 2004 (Revised) .A. Proceeds of Taxes B. Exclusions C. Appropriations Subject to Limitation D. Current Year Limitation E. Over /(Under) Limit Amount $ 22,051;812 2,548,590 19,503,222 86,412,476 (66,909 • • EXCLUS'IOIVS TO APPROPRIATIONS LIMIT FY 2004 CANN CALCULATIONS (Revised) COURT ORDERS $ - FEDERAL MANDATES FLSA ,Payments 57,550 Medicare Payments 304,971 Landfill Closure Costs 3,000 Underground Tank ,Monitoring - Unemployment Payments 29,669 TOTAL FEDERAL MANDATES 395,190 QUALIFIED CAPITAL OUTLAYS COP - Street Lights, Police Facility Community Center 1,403,400 Computer Software 750,OOQ 2,153,400 QUALIFIED DEBT SERVICE, - TOTAL EXCLUDED APPROPRIATIONS $ 2,548,590