HomeMy WebLinkAbout9.1 Appropriation Limits
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: JUNE 27, 1991
SUBJECT: 1991-92 Appropriations Limit
Report prepared by Phillip S. Molina
EXHIBITS ATTACHED: Resolution
RECOMMEND~TION: ) Approve use of County population increase
in calculation' of 1991-92 Appropriations
. Limit.
~ 2) Adopt Resolution establishing
Appropriations Limit for Fiscal Year 1991-92
FINANCIAL STATEMENT: 1991-92 Appropriations Limit at $17,515,325.
DESCRIPTION: Last June 1990, the City Council adopted
Resolution no. 97-90 establishing the City's appropriation limit
for this fiscal year at $16,445,712.
Each fiscal year the Council is required by law to adopt an
appropriation limit. In prior years the limit changed each year
by the change in the 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.
Beginning this fiscal year the appropriation limit formula was
changed by Proposition #111. Now the City can choose between the
greater of either growth in the California Per Capita Income or
the growth in the non-residential asse~sed valuation for the
first factor; and between the greater of either the change in the
population for Dublin or the County for the second factor.
The 1991-92 appropriations limit is calculated in a consistent
manner as required by Article- XIIIB of the California State
Constitution as amended, using the following factors:
Change in popul at ion: -
Dublin
Estimated population (1/1/90) 25,825
Estimated population (1/1/91) 23,484
change = decrease of 2,341
change in percentages = -9.064%
Alameda County
Estimated population (1/1/90) 1,264,338
Estimated population (1/1/91), 1,293,036
change = increase of
change in percentages =
28,698
2.27% <--
Change in State per capita income = 4.14% -<_.:'
Change in non-residential valuation= County data not available
The appropriations limit growth rate formula:
1.0227 X 1.0414 = 1.065039...
The City's appropriations limit base for 91-92 calculations, is
the 90-91 appropriation limit of $16,445,712.
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When combined, the appropriations growth rate and the adjusted
current year's appropriation limit produce a new appropriation
limit for the next fiscal year of $17,515,325:
$16,445,712 X 1.065039...
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 1991-92 is
estimated to be $12,282,113.
Recommendation
Sin~e 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 appropriation limit for fiscal
year 1991-92.'
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RESOLUTION NO. 66-91
A RESOLUTION OF THE CITY COUNCIL
,OF THE CITY OF DUBLIN
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ADOPTING THE APPROPRIATIONS LIMIT
FOR FISCAL YEAR 1991-92
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 County's population plus the change in
the State Per Capita Personal Income.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin does hereby adopt the City1s Appropriations
Limit for Fiscal Year 1991-92 of $17,515,325 which has been
calculated in accordance with state law.
PASSED, APPROVED AND ADOPTED this 27th day of June,
1991.
AYES: Councilmembers Burton, Howard, Jeffery and
Moffatt
NOES: None
ABSENT: Mayor Snyder
ABSTAIN: None
~1tY.
ATTEST:
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C' Y Clerk
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1991-92
CITY OF DUBLIN
APPROPRIATIONS LIMIT
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In accordance with Chapter 1025 of the Statutes of 1987, each government entity
is required to include the appropriations limit in the 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 of the California
Constitution.
Change in population (as reported by the State Department of Finance):
Change in population:
Dublin
Estimated population (1/1/90)
Estimated population (1/1/91)
25,825
23,484
change = decrease of
change in percentages =
2,341
-9.064%
Alameda County
Estimated population (1/1/90)
Estimated population (1/1/91)
1,264,338
1,293,036
change = increase of 28,698
change in percentages = 2.27% <--
Change in State per capita income 4.14% <--
change in non-residential valuation= County data not available
The appropriations limit growth rate formula
1.0227 X 1.0414 = 1.065039...
Estimated Appropriations Limit~
$17,515,325
The law provides that the appropriations limit onlX 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 1991-92 preliminary budget recommends appropriations
to be funded by Proceeds of Taxes, which are subject to the limit, equal to
$12,282,113.
Changes in the method for calculating the appropriations limitation
The method of calculating the 1991-92 appropriation limits recently changed
with the passage of Proposition #111. The appropriation limit was calculated
based upon the new factors that were available at the time this report was
generated. When more information becomes available from the County and if that
information results is increasing the appropriation limit for Dublin, a revised
appropriation limit will be brought back to the Council.
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