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Home My WebLink About9.1 1993-94 AppropriationsLmt '1 . . CITY OF DUBLIN AGENDA STATEMENT SUBJECT: CITY COUNCIL MEETING DATE: June 1, 1993 1993-94 APpropriati~~t (Prepared by: st~tS h , Director) ;V ATTACHED:~Solution Jr., Interim Finance EXHIBITS RECOMMENDATION: 1 . Approve use of Dublin's population increase and increase in non-residential construction valuation in calculations of 1993-94 Appropriations Limit. Adopt Resolution establishing Appropriations Limit for Fiscal Year 1993-94. 2. FINANCIAL STATEMENT: Recommended 1993-94 Appropriations Limit is $20,975,686. The appropriations subject to this limit in the recommended Fiscal Year 1993-94 Budget are $11,158,022. DESCRIPTION: On June 9, 1992,' the City Council adopted Resolution No. 75-92 establishing the City's Appropriations Limit for Fiscal Year 1992-93 at $18,978,048. The Appropriations Limit for Fiscal Year 1992-93 has been recalculated to be $19,316,762 based on a corrected factor for growth from non-residential construction. Each fiscal year the Council is required by law to adopt an Appropriations Limit. This fiscal year the Appropriations Limit formula is determined by choosing between the greater of either the change in the population for Dublin or the County for the first factor; and between the greater of either growth in the California Per Capita Income or the growth in the non- residential assessed valuation for the second factor. The 1993-94 Appropriations Limit is calculated in a consistent manner as required by Article XIII B of the California State Constitution, as amended, using the following factors: Chanqe in Population: DUBLIN Estimated Population (1/1/92) Estimated Population (1/1/93) 24,140 24,704 Increase in population Change in percentages +564 +2.34% (used in calculation) ALAMEDA COUNTY Estimated Population (1/1/92) Estimated Population (1/1/93) Chanqe in State Per Capita Income 1,304,267 1,324,430 +20,163 +1.55% (not used) +2.72% (not used) Increase in population Change in percentages Chanqe in Non-Residential Valuation +6.1053% (used in calculation) The Appropriations Limit Growth Rate Formula: 1.0234 x 1.061053 = 1.08588 ---------------------------------------------------------------------- ITEM NO. ~.1 COPIES TO: CITY CLERK FILE ~ f . . The city's Appropriations Limit base for Fiscal Year 1993-94 is the product of the 1992-93 Appropriations Limit of $19,316,762 multiplied by the appropriations growth rate which produces a new Appropriations Limit for the next fiscal year of $20,975,686: $19,316,762 x 1.08588 = $20,975,686 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 1993-94 is estimated to be $11,158,022. As required by this law, documentation of the calculations and supporting analyses are available for public inspection in the City's Finance Department. Recommendation Since the City is required by law to adopt an Appropriations Limit calculated in accordance with the procedures outlined above, it is recommended that the City Council adopt the attached resolution establishing the City's Appropriations Limit for Fiscal Year 1993-94, and thereby authorize the use of the percentage change in population for Dublin, and the change in local assessed valuation generated from non- residential construction as the factors that produce the new limit. a: 61 appro. agenda#11 . . ~ RESOLUTION NO. - 93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************************** ADOPTING THE BUDGET APPROPRIATIONS LIMIT FOR FISCAL YEAR 1993-94 WHEREAS, the voters of the State of California, in November, 1979, approved the addition of Article XIII B to the California Constitution, popularly known as Proposition 4; and WHEREAS, Article XIII B of the California Constitution places certain restrictions on appropriations made by cities in California beginning June 1, 1980; and WHEREAS, restrictions on City appropriations are based upon those appropriations funded by Proceeds of Taxes and adjusted by changes in the County's population plus the change in non-residential construction relative to total local assessed valuation increases. 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 1993-94 of $20,975,686, which has been calculated in accordance with State Law and is shown in Exhibit A attached hereto and by reference made a part hereof. PASSED, APPROVED AND ADOPTED this th day of June, 1993. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk a: reso$app.agenda#11 . . .. EXHIBIT A 1993-94 CITY OF DUBLIN BUDGET APPROPRIATIONS LIMIT In accordance with Chapter 1025 of the Statutes of 1987, each government entity is required to include the appropriations limit in its annual budget. This limit is commonly referred to as the Gann Limit or Proposition 4 limit. The limit is calculated in a manner consistent with Article XIII B of the California Constitution. Chanqe in population (as reported bv the State Department of Finance): Change in population: DUBLIN Estimated population (1/1/92) Estimated Population (1/1/93) 24,140 24,704 Increase in population % change in population +564 +2.34% (used in calculation) ALAMEDA COUNTY Estimated population (1/1/92) Estimated population (1/1/93) 1,304,267 1,324,430 Increase in Population % change in Population +20,163 +1.55% (not used) Chanqe in State Per Capita Income: +2.72% (not used) Chanqe in non-residential valuation +6.1053% (used in calculation) The Appropriations Limit Growth Rate Formula: 1.0234 x 1.061053 = 1.08588 The City's Appropriations Limit base for 1993-94 is calculated by multiplying the 1992-93 revised Appropriations Limit of $19,316,762 by the Appropriations Limit Growth Rate. The new Appropriations Limit for the next fiscal year amounts to $20,975,686. The law provides that the Appropriations Limit only restricts those appropriations that are funded by "Proceeds of Taxes." Proceeds of Taxes is narrowly defined by the State Law and was recently altered by California judicial proceedings. The 1993-94 preliminary Budget recommends appropriations to be funded by Proceeds of Taxes, which are subject to the limit, equal to $11,158,022.