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HomeMy WebLinkAbout8.3 Adopt Appropriation Limit a, /- CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 21, 1988 . SUBJECT 1988-89 Appropriations Limit EXHIBITS ATTACHED Resolution Adopting the Appropriations Limit for Fiscal Year 1988-89 q1"/ RECOMMENDATION Adopt Resolution FINANCIAL STATEMENT: 1988-89 Appropriations Limit - $12,825,787 DESCRIPTION In June 1987 , the City Council adopted Resolution No. 46-87 establishing the City' s appropriations limit for Fiscal Year 1987-88 at $9 ,670,616. Each fiscal year, the Council is required to adopt an appropriations limit. According to the legislation that initiated the appropriations limit requirements , the limit changes each year by the change in population plus the lesser of the change in the U. S. Consumer Price Index (CPI) , or the change in the State per capita personal income. The 1988-89 appropriations limit is calculated in a consistent manner as required by Article XIIIB of the California State Constitution, using the following factors : Change in Population Estimated population (1/1/87 ) 20,214 Estimated population ( 1/1/88) 21,389 change = increase of 1,175 change in percentages = 5.81% Change in U. S. CPI = 3.93% Change in State per capita income = 4.66% The appropriations limit growth rate formula 1.0581 x 1.0393 = 1.09968 The City received the appropriations limit transfer from the Dublin San Ramon Services District of $1,992 ,548, which when added to the appropriations limit for Dublin for this year of $9 ,670,616, results in a total appropriations limit base of $11,663 ,164. When combined, the appropriations growth rate and the adjusted current year' s appropriations limit produce a new appropriations limit for the next fiscal year of $12 ,825,787 : $11;663,164 x 1.09968 This limit only restricts those appropriations which are funded by proceeds of taxes as defined by Article XIII B of the State Constitution. The amount of proceeds of taxes for 1988-89 is estimated to be $9,892,792. Recommendation Because the City is required by law to adopt an appropriations limit calculated in accordance with the procedure outlined above, it is recommended that the City Council adopt the attached resolution establishing the City' s appropriations limit for Fiscal Year 1988-89. COPIES TO:IL, ITEM NO. jl J RESOLUTION NO. -88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************** ADOPTING THE APPROPRIATION LIMIT FOR FISCAL YEAR 1988-89 WHEREAS, the voters of the State of California, in November , 1979 approved the addition of Article XIIIB to the California Constitution, popularly known as Proposition 4; and WHEREAS, Article XIIIB of the California Constitution places certain restrictions on appropriations made by cities in California beginning July 1, 1980; and WHEREAS, on November 24, 1981 the Alameda County Board of Supervisors adopted Resolution No . 092103 which established an appropriations limit of $5, 361, 000 effective February 1, 1982 for the newly incorporated City of Dublin; and WHEREAS, restrictions on City appropriations are based upon those appropriations funded by Proceeds of Taxes and adjusted by changes in the City' s population plus the lesser of the change in the State Per Capita Personal Income or the U.S. CPI . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the City' s appropriations Limit for Fiscal Year 1988-89 of $12, 825, 787 which has been calculated in accordance with state law. PASSED, APPROVED AND ADOPTED this 27th day of June 1988 . AYES: NOES: . ABSENT: Mayor ATTEST: City Clerk