HomeMy WebLinkAbout8.1 Revised Approp 04-05
CITY CLERK
File # D~~QJ-[Z][Q]
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 20. 2005
SUBJECT:
Adoption of a Revised Appropriations Limit for
Fiscal Year 2004-2005
(Prepared hy: Fred W Marsh, Finance Manager
and Lisa Hisatomi, Administrative Analyst II)
ATTACHMENTS: 1. Res01ution
2. Revised Calculation of Fiscal Year 2004-2005
Appropriations Limit
RECOMMENDATlO~ ~ Approve the selected factors used to calculate the Revised 2004-
ð 2005 Limit and adopt the Resolution.
FINANCIAL STATEMENT: The proposed Revised Limit for Fiscal Year 2004-2005 is
$116,083,136 and only $30,343,322 in appropriations for Fiscal
Year 2004-2005 arc subject to this Limit.
DESCRIPTION:
Each year the City Council is required by State Law to adopt an Appropriations Limit (Limit) in
conjunction with the annual Budget process. The 2004-2005 Limit was calculated and adopted by
Resolution 121-04 on June 28, 2004. At the time the Limit was adopted, final information relating to the
population for the City of Dublin and thc amount of Non-Residential Assessed Valuation, both of which
arc uscd in thc calculation of the Limit, was not available. Now that the information is available, it is
recommended that the Council adopt a Revised Limit for Fiscal Year 2004-2005.
Description of Appropriations Limit
The laws regulating the application of the Limit, forbid an agency from appropriating specific funds that
would exceed the Limit. The restriction applies to appropriating monies categorized as "Proceeds of
Taxes." The Limit carries forward each year and is subject to an adjustment in accordance with a
spccified formula.
Each government entity is required to calculate a Limit and include it as part of the Annual Budget. This
Limit may also be referred to as the Gann Limit or Proposition 4 Limit. The City has complied with this
rcquircment, as well as the posting of the proposed calculation prior to adoption. The adjustment is made
annually and is based on a formula which may include the following factors (the City has the discrction to
pick onc factor from each category below):
· Change in City population; or
· Change in population for the entire County;
and
· Change in State per capita income; or
· Change in non-rcsidential assessed valuation.
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COPIES TO:
DOcumenr in Gann Limit.XLS
ITEM NO.
'~1..
B..t
2004-2005 Proposed Revised Appropriations Limit
Staff has prepared the calculations necessary to adopt the Revised Limit for Fiscal Year 2004-2005 in
accordance with State Law and with the Uniform Guidelines of the League of California Cities. The
discretionary factors selected in calculating the 2004-2005 Revised Limit are: (1) the change in the City
population, which represents the January I, 2004 population provided by the State Department of Finance;
and (2) change in the State per capita income, which represents the figures provided by the State
Departmcnt of Finance.
The Revised 2004-2005 Appropriations Limit, as calculated on Attachment 2 of the Proposed Resolution
(Attachment I) is $116,083,136, based upon a revised adjustment factor of 10.2% over the 2003-2004
Limit. Upon adoption, this figure becomcs the base limit, which will be increased by the adjustment factor
calculated for the subsequent fiscal year. Total appropriations for Fiscal Year 2004-2005 that are subjcct
to the Limit total $30,343,322 which is significantly below the allowed amount. Staff has prepared a
Resolution (Attachment 1) that will adopt a Revised Appropriations Limit for 2004-2005.
RECOMMENDATION
Staffrccommcnds that the City Council adopt the attached Resolution.
L.Cb'-
RESOLUTION NO. - 05
\OCJ"1-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
ADOPTING A REVISED APPROPRIATIONS LIMIT
FOR F1SCAL YEAR 2004-2005 OF $116,083,136
WHEREAS, State law requires that an Appropriations Limit ("Limit") be adopted by the City
Council in conjunction with the Annual Budget process; and
WHEREAS, the City Council previously adopted resolution 121-04 establishing an
Appropriations Limit for Fiscal Year 2004-2005; and
WHEREAS, at the time the "Limit" was adopted final information related to the population for
the City of Dublin and the amount of "Non-Residential Assessed Valuation", both of which are used in the
calculation of the limit, was unknown; and
WHEREAS, Revised population estimates and assessed valuations are now available; and
WHEREAS, the law allows the option to selcct the factors to be used in the calculation ofthc
Appropriations Limit; and
WHEREAS, the City must select between the following factors: (A) the change in City
population, or, (8) Countywide population, and cither: (1) the change in the State per capita income, or (2)
the change in the assessed valuation oflocal non-residential construction; and
WHEREAS, the revised 2004-2005 Appropriations Limit used the following discretionary
factors: (1) the change in the City population and (2) change in the State per capita income; and the
calculation of the revised Appropriations Limit for 2004-2005 is described in Attachment 2, attached
hereto and by reference made a part hereof.
NOW, THEREFORE, BE IT RESOLVED that the City Council ofthc City of Dublin does
hereby adopt the City of Dublin Revised Appropriations Limit for Fiscal Year 2004-2005 of
$116,083,136.
BE IT FURTHER RESOLVED that the limit has been calculated in accordance with State Law
and is shown in Attachment 2, attachcd hcrcto.
PASSED, APPROVED AND ADOPTED this 20th day of June, 2005.
AYES:
NOES:
ABSENT:
ATTEST:
Mayor
City Clcrk
:t:TEM <2>. \
~-20~O$
ATTACHMENT 1
REVISED CALCULATION OF FISCAL YEAR 2004-2005
APPROPRIATIONS LIMIT
(Based On Adopted Fiscal Year 2003-2004 Limit)
2. ~L..
A. SELECTION OF OPTIONAL FACTORS
1. Population - City vs. County
(% Decrease)
01/01/2003 01/01/2004 % Increase
City of Dublin 33,910 36,174 6.676%
QR
Alameda County 1,483,809 1,493,441 0.649%
Selected Factor #1 = City of Dublin Population Growth 6.676%
2. State Income vs. City Non-Residential Buildina
Change in State Per Capita Income
Change in Non-Residential Assessed Valuation
= 3.28%
= 2.681%
QR
Selected Factor #2 = Change in State Per Capita Income 3.28%
B. CALCULATION OF GROWTH LIMIT ADJUSTMENT
The formula for calculating the adjustment is as follows:
Selected Factor 1 + 100
1UU
Selected Factor 2 + 100
100
=
x
=
Y
(X) x (Y) = Fiscal Year 2004-2005 Appropriations limit Adjustment Factor
6.676+100
1UU
=
1.06676 (Originally was 1.06747)
3.28+100
100
=
1.0328 (Originally was 1.0328)
1.06676 x 1.0328 = 1.1017 = 2004-2005 Adjustment Factor (Originally was 1.1025)
C. CALCULATION OF APPROPRIATIONS LIMIT
Fiscal Year 2003-2004 Appropriations Limit =
Fiscal Year 2004-2005 Adjustment Factor
Fiscal Year 2004-2005 Appropriations Limit
(Originally was $116,167,430)
$105,367.283
x 1.1017
$116,083,136
ATTACHMENT 2