HomeMy WebLinkAbout9.1 Appropriation Limits
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 26, 1990
SUBJECT:
1990-91 Appropriations Limit
Report prepared by Phillip Molina, ,Finance Director
EXHIBITS ATTACHED: Resolution
RECOMMENDATION: ~oPt Resolution
FINANCIAL STATEMENT: 1990-91 Appropriations Limit - $16,445,712
DESCRIPTION: In June, 1989, the City Council adopted Resolution No. 85-89
establishing the City's appropriations limit for Fiscal Year 1989-90 at $14,436,706.
Each fiscal year, the City 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 Dublin's 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 1990-91 appropriations limit is calculated in a consistent manner as required by
Article XIIIB of the California State Constitution, using the following factors:
Chanqe in population
Estimated population (1/1/89) 23,554
Estimated population (1/1/90) 25,825
Change = increase of 2,271
Change in percentages = 9.64%
Chanqe in U. s. cpr = 3.9%
Chanqe in state per capita income = 4.2%
The appropriations limit qrowth rate formula 1.0964 x 1.039 = 1.391596
The City's appropriations limit base for Fiscal Year 1990-91 is calculated as follows:
$14,436,706 x 1.1391596 = $16,445,712
This limit only restricts those appropriations which are funded by proceeds of taxes as
defined by Article XIIIB of the state Constitution. The amount of Appropriations funded
by proceeds of taxes for Fiscal Year 1990-91 is estimated to be $11,627,212. Therefore,
the City will be $4,818,500 under its appropriations limit for Fiscal Year 1990-91.
IMPACT OF PROPOSITION 111
With the passage of Proposition 111, the method for not only calculating the
appropriations limit, but also those appropriations funded by proceeds of taxes was
modified. For Fiscal Year 1990-91, the base year for determining a City's appropriations
limit will be Fiscal Year 1986-87. This would be adjusted by:
1. a. Percentage change in California per capita personal income (old law); or
b. Percentage change of growth in total assessed value due to non-residential
construction (new law) ; and
2. a. Percentage change in City's population (old law); or
b. Percentage change in population for entire county (new law) .
Staff has contacted the Alameda County Assessor's Office, which indicated that the
information regarding non-residential construction was not yet available.
Staff has reviewed the County's population growth since 1986-87 and determined that it is
not as great as the City's.
With respect to appropriations subject to limitation, the City will be able to exclude
certain capital costs in excess of $100,000. These exclusions do not affect the limit on
the appropriations funded by proceeds of taxes. These exclusions have not been taken into
consideration in the $11,627,212 identified above.
RecomI:llendi!tJ on
It is Staff's recommendation that the City Council adopt an appropriations limit which is
calculated based on the provisions of the old law. Once information from the County
Assessor's Office is made available and guidelines for implementation of Proposition 111
are made available by the League of California Cities, Staf~ will present a revised limit /
calculation for Council consideration.
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RESOLUTION NO. 97 - 90
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING THE APPROPRIATIONS LIMIT
FOR FISCAL YEAR 1990-91
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 June 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. CPl.
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 1990-91 of $16,445,712 which has been calculated in accordance
with state law.
PASSED, APPROVED AND ADOPTED this 26th day of June, 1990.
AYES: Councilmembers Hegarty, Jeffery, Snyder, Vonheeder, and
Mayor Moffatt.
NOES: None.
ABSENT: None.
ABSTAIN: None.
ATTEST:
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