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Home My WebLink AboutAgenda Bill 06/27/2001 (3) ■ CITY OF PETALUMA, CALIFORNIA Or" AGENDA BILL Agenda Title: - Meeting Date: Resolution Adopting FY 2001-2002 Appropriations Liinit June 25, 2001 Department: Director: Contact Person: Phone Number: Finance William J. Thomas William J. Thomas 778-4323 Cost of Proposal: None Amount Budgeted: Account Number: Attachments to Agenda Packet Item: 1. Agenda Bill 2. Agenda Report 3. Resolution Adopting Appropriations Limit And Making Annual Elections 4. Appropriations Limit Calculations—Worksheets 1-7 Summary Statement: State law requires the City to set an annual appropriation.limit. The limit is based on appropriations that are from proceeds of taxes, as defined by the law. The limit amount may be increased each year by the I application of annual adjustment factors. The City of Petaluma makes an annual election to choose the adjustment factors. The limit for Fiscal Year 2001-2002 has been calculated by using the increase in the rise in per-capita income in the State of California and the City population growth factor. The Fiscal Year ' 2001-2002 appropriations limit is $68,557,450. This limit has increased by 10.67% from the prior year. This amount is $50,346,131 under the appropriations limit. Council Priority: THIS AGENDA ITEM IS CONSIDERED To BE PART OF, OR NECESSARY To, ONE OR MORE OF THE 1999-2000 PRIORITIES ESTABLISHED'BY THE CITY COUNCIL ON JANUARY 30, 1999 AND MARCH 18;2000. Priority(s): Timely Budget Recommended City Council Action/Suggested Motion: To adopt the Resolution 'eviewed by Finance Director: Reviewed by City Attorney: Approved by City Manager: Date: Date: Date: �--e ._ ,ed x.13 a/ Today's Date: Revision # and Date Revised: File Code: June 23, 2001 # S:/agenda/Gann2002 • I CITY OF.PETALUMA, CALIFORNIA • JUNE 25, 2001 AGENDA REPORT ADOPT THE FY 2001-2002 APPROPRIATIONS LIMIT 1. EXECUTIVE SUMMARY: State law;requires the City to set an annual appropriation limit. The limit is based on appropriations that are from proceeds of taxes,:as defined by the law. The limit amount may increased each year by the application of annual adjustment-factors. The limit:for Fiscal Year 2001-2002 has,been calculated by using the rise in per-capita personal income in the State of,California and the City population,gr'owth factor. The.Fiscal Year 2001- 2002 appropriations limit:is $68,557,450. This limit has:increased by 10.67%from the prior year. The Fiscal Year 2001-2002 appropriations`amount that is subject to the limit is $18,124,019 This amount is 50,346,131 under,the appropriations limit. 2. BACKGROUND: In November 1979, the people of California;added Article XIII-B'to the State Constitution, which placed limitations on the appropriations of state and local governments. The Article defined the process to calculate the appropriations limit and requires cities to adopt a,resolution setting an annual appropriations limit. In June 1990, the people adopted Proposition 111,which among other things amended the Article XIII-B. The amendment created the new base year-of FY 86-87, allowed annual increases based a factor comprised of the change in population combined with either the change in'California per,capita personal,income or the change in the local assessment,roll.due to local nonresidential construction. It also provides for exclusion of capital expenditures over $100,000 and requires independent auditor review of the calculations. Guidelines were developed to define and. implement the changes and to establish the annual review requirements. The City of Petaluma's appropriations:limit has increased significantlyasince.1987 by applying the allowable factors. In the current,fiscal year, the City is using the change;inper-capita personal income:and population growth as the factors to adjust the appropriation limit. As,required by statetaw, detailed worksheets showing the appropriations limitcalculations are submitted with this report and are available for public review at the City Clerk's office. 3. ALTERNATIVES: None. State law requires the adoption of an.appropriations limit. 4. FINANCIAL IMPACTS: None. 5. CONCLUSION: The City has calculated;the;appropriation limit and appropriations subject to limit based on'state law and,statewide accepted guidelines. For FY-2001-2002 the City's appropriations-that are subject to the lnnit amount to $18,211,319, which is under the limit of$68,557,450. 6. RECOMMENDATION: To Adopt the Resolution • 2- Y` • 1 RESOLUTION ADOPTINGTHE APPROPRIATION LIMIT FOR 2 FISCAL YEAR 2001-2002 and MAKING THE ANNUAL ELECTION FOR 3 ADJUSTMENT FACTORS 4 5 WHEREAS, the people of.California on November 6, 1979, added Article XIII-B to the 6 State Constitution placing various limitations on the appropriations of state and local 7 governments; and 8 9 WHEREAS, the State•Legislature adopted Chapters 1205 and 1342 of the 1980 Statutes 10 which implemented Article XIII-B;; and 11 12 WHEREAS, the people of California on June 5, 1990 amended Article XIII-B effective 13 July 1, 1990; and 14. 15 WHEREAS, the provisions of the amendments have been interpreted by a coalition of 16 statewide organizations, and the organizations have issued through the League of California 17 Cities revised guidelines to calculate the appropriations limit; and 18 19 WHEREAS, section 791.0 of the Govenunent Code requires cities to adopt a resolution 20 setting the annual appropriation limit at a regularly scheduled meeting or a noticed special 21, meeting; and 2 Li,, WHEREAS, the City of Petaluma has complied with the.provisions of Article XIII-B in 24 calculating the appropriations limitfor Fiscal Year 2001-2002; and 25 26 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma 27 that: 28 1. The FY 2001-2002 Appropriations-Limit shall be $68,557;450 29 30 2. The FY 2001-2002 Appropriations subject to the Limit is $18,211,319. 31 32 3. The annual election for Adjustment Factors shall be to use the growth in City 33 population and the increase in the per-capita personal income for the State of 34 California. 3 CITY OF PETALUIVIA,•CA • APPROPRIATIONS LIMIT CALCULATION FY 01-02 ADOPTED BUDGET WORKSHEET#1 -USER FEES VERSUS COSTS -Police Fire Community Public Recreation FY 01-02 Services Services- Development Facilities TOTALS COSTS REASONABLY BORNE 5,743,050 288,250 1,980,600 1,033;300 1,417 700, 10;462,900 FEES 271,000 298,800 3,099;750 191,200 744,650 4,605,400 AMOUNT OF FEE REVENUE LESS THAN COST (5,472,050) 10,550 1,119;150 (842,100) (673,050) (5;857,500) 4 CITY OF PETALUMA, CA • APPROPRIATIONS LIMIT CALCULATION FY 01,02 ADOPTED BUDGET WORKSHEET#2 - CALCULATION OF PROCEEDS OF TAXES. Proceeds of Non-Proceeds Total. REVENUE Taxes of Taxes Taxes 15,825;700 2;445,600 18,271,300 From State - Motor Vehicle In Lieu 2,650,000 2,650,000 Off Highway 1,000 1,000 Gas Tax 1,137,400 1,137,400 Homeowner's Relief . 85;700 85,700 SB 90 Reimbursements 65,000 65,000 Other.Intergovernmental 18200,500 18,200,500 Locally Raised - Special Benefit-Landscape Assessments 158,000 158,000 Licenses and Permits 2,772,200 2,772,200 Fines, Forfeiture and Penalties 440,000 440,000 Rents 199,500 199,500 Charges for Services 1,941,150 1,941,150 User Fees (Worksheet One) 3,747,600 3,747,600 Other '; Miscellaneous 165,000 165,000 SubTotal 18;627;400 31,206,950 49,834,350 Interest,Earnings (Worksheet Three) 646,469 378,131 1,024,600 Total Revenue 19,273,869 31,585,081 50,858,950 Reserve Withdrawals - - - Total of These Funds 19,273,869 31,585,081 50,858,950 Enterprise Funds 25,046,750 25,046,750 Grand Total-Adopted Budget 19;273,869 56,631,831 75,905,700 5 CITY OF PETALUMA,CA APPROPRIATIONS LIMIT CALCULATION • FY 01-02 ADOPTED'BUDGET WORKSHEET #3 - INTEREST EARNINGS PRODUCED.BY TAXES. Amount Source A. Non-Interest Tax Proceeds 18,627,400 Worksheet'.#2 B. Minus.Exclusions 1,062,550 Worksheet`# 7 C. Net Invested Taxes 19,689,950 (A-B) D. Total Non-Interest Budget 31,206,950 Worksheet;# 2 E. Tax Proceeds as %u of Budget 63% ( C/D ) F. Interest Earnings 1,024,600 Budget G. Amount of InterestEained from Taxes 646,469 (E*F) H. Amount of Interest Earned.from Non-Taxes 378,131 ( F-G) • 6 CITY OF PETALUMA, CA APPROPRIATIONS LIMIT CALCULATION FY 01-02 ADOPTED BUDGET WORKSHEET#4 - APPROPRIATIONS SUBJECT TO.LIMITATION Amount Source A. Proceeds of Taxes 19,273,869 Worksheet# 2 B. Exclusions 1,062,550 Worksheet# 7 C. Appropriations Subject to Limitation 18,211,319 (A-B ) D. Current Year Limitation 68,557,450 Worksheet # 5 E. Over/(Under) Limit (50,346,131) ( C-D ) 7 N.. • CITY OF PETALUMA, CA • • APPROPRIATIONS LIMITS:CALCULATION FY 01-02 ADOPTED BUDGET WORKSHEET #5 - APPROPRIATIONS LIMIT Amount Source A. Last Year's,:Limit 61,949,625 Adopted Budget B. Adjustrnent Factors 1. Population% 1;0782 State Finance 2. Growth in Non-Residential Assessed Valuation 1.0264 State Finance Total Adjustment% 1.1067 (B1 * B2 ) C. Annual Adjustment;$ 6,607,825 (B*A) D. Other Adjustments Lost Responsibility (-) Transfer to Private (-) Transfer to Fees (-) Assumed Responsibility (+) • SubTotal - E. Total Adjustments 6,607;825 ( C±D) F. This Year's Limit 68,557,450 (A+E) 0 • CITY OF PETALUMA, CA APPROPRIATIONS LIMIT ANALYSIS. FISCAL YEAR 2000-2001 WORKSHEET #6 -APPROPRIATIONS LIMIT ANALYSIS FY 00-01 Appropriations Limit $ 61,949,625 Adjustment Factors Change in Per Capita Personal Income (FY 2002/2001) 1.0782 • City Population Increase January 2000 to January 2001 1.0264 Factor for Fiscal Year 2001-2002 1.1067 6,607,825 FY 01-02 Appropriations Limit $ 68,557,450 FY 01-02 Proceeds of Taxes 19,273,869 Exclusion (1,062,550) FY 01-02 Appropriations Subject to Limit 18,211,319 FY 01-02 Appropriations Under Limit $ 50,346,131 • 9 CITY OF PETALUMA, CA APPROPRIATIONS LIMITS CALCULATION FY 00‘01,ADOPTED BUDGET WORKSHEET #7 EXCLUSIONS TO APPROPRIATIONS LIMIT COURT ORDERS - FEDERAL MANDATES FLSA.Payments 50,350 Medicare Payments 271,700 Landfill Closure Costs 3,000 Underground Tank Monitoring - Unemployemni Payments 10 9.50. TOTAL FEDERAL MANDATES 336,000 QUALIFIED CAPITAL OUTLAYS • COP - Street Lights, Police,Facility Community Center • 545,900 Financing Leases 180,650' 726,550. QUALIFIED DEBT SERVICE - TOTAL EXCLUDED APPROPRIATIONS 1,062,550 /0