Item 24 - Appropriations Limitation
AGENDA REPORT SUMMARY
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TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man~
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INITIATED BY: John D. Fitch, Assistant City Manage~~
Peggy A. Stewart, Director of Administ ative Servic~r
Christine Tsung, Finance Manager ~ '
DATE: June 27, 1995
SUBJECf: Appropriations Limitation
ABSTRACf
Government Code Section 7910 requires each local government to establish its
Proposition 4 appropriations limit by resolution each year at a regularly scheduled
meeting or a noticed special meeting. Proposition 111 passed in 1990 allows the City
to use a higher adjustment factor, and this report has reflected that change.
- ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMPACT
None. The City's 1995-1996 budget appropriation is within Proposition 4 limit.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution establishing the
City's appropriation limit for fiscal year 1995-1996 as required by Government Code
Section 7910.
ACTION
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~ AGENDA REPOR"
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no seperate discussion of the report prior to approval by the
City Council unless members of the Council. staff or public request it to be removed from the Consent Calendar and
discussed separately. if you with to have this report pulled for discussion. please fill out a slip indicating the report number
and give it to the City C)erk prior to the beginning of the City Council meeting.
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man~ .
"-"
INITIATED BY: John D. Fitch, Assistant City Manage~:;'
Peggy A. Stewart, Director of Administrative Services
Christine Tsung, Finance Manager .~
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DATE: June 27, 1995
SUBJECT: Appropriations Limitation
BACKGROUND
Proposition 4 was adopted by the voters on November 6, 1979, and became Article
XIIIB of the California Constitution. This article places a limit on the annual
growth allowable for State and Local government appropriations.
As part of the articles of incorporation approved by the voters in November of 1980,
the base year appropriations limitation for the City of Poway was established at
$7,047,200 for fiscal year 1981-1982. Article XIIIB provides that the base limit be
increased in future years by the percentage of growth in population and by the
increase in Consumer Price Index or California Personal Per Capita Income, whichever
is lower. Proposition 111 and SB-88 (Chapter 60/90) allow cities, beginning with
the 1990-91 appropriations limit, to use an alternative to the lesser of California
per capita income or the U.S. consumer price index for measuring inflation. Each
city may choose either the growth in the California per capita income or the growth
in the nonresidential assessed valuation due to new nonresidential construction
within the city as an alternative inflation measure.
The City of Poway has chosen the new alternative allowed by law. The nonresidential
growth rate within the City is provided by the San Diego County Assessor. The
revised annual adjustment factors will be applied to the 1986-87 limit and each in
between in order to calculate the 1990-91 limit. From FY 1990-91 on, the City has
chosen the higher of California per capita income or nonresidential assessed
valuation growth as its assessment factor.
Using this data, the appropriation limit for each fiscal year was calculated as
follows:
ACTION:
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---- Agenda Report
June 27, 1995
Page 2
Fiscal Year Amount
1982-1983 $ 7,533,457
1983-1984 $ 8,296,596
1984-1985 $ 8,804,348
1985-1986 $ 9,307,076
1986-1987 $ 9,987,423
1987-1988 $15,746,171
1988-1989 $19,193,008
1989-1990 $55,185,656
1990-1991 $64,109,176
1991-1992 $69,577 ,689
1992-1993 $70,760,510
1993-1994 $74,128,710
1994-1995 $75,485,265
The State Department of Finance has notified the City that the increase in the
California per capita personal income equaled 4.72 percent, and the growth in
population for 1995 equaled -1.19 percent. Therefore, the City appropriation limit
for fiscal year 1995-1996 is adjusted by these factors to equal $78,248,026.
- Following the passage of Proposition 4, the State Legislature adopted Government
Code Section 7910 which requires each governmental agency to establish its
appropriation by resolution annually. Attached please find a copy of a resolution
which establishes the City of Poway's appropriation limit for fiscal year 1995-1996.
It should be noted that Proposition 4 limits appropriations of proceeds of taxes
only. Proceeds of taxes includes such revenues as property taxes, sales and use
taxes, transient occupancy taxes, and most of the general fund's State subventions.
Revenues from other sources such as fees for services and State and Federal grants
are not subject to the limit.
FINDINGS
In reviewing the proposed budget for fiscal year 1995-1996 based upon the above
criteria, it was determined that the appropriation of proceeds of taxes subject to
the Proposition 4 limitation equals $12,790,414 which is below the City's
appropriation limit of $78,248,026 by $65,457,612.
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMPACT
None. The City's 1995-1996 budget appropriation is within Proposition 4 limit.
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Agenda Report
June 27, 1995
Page 3
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution establishing
the City's appropriation limit for fiscal year 1995-1996 as required by Government
Code Section 7910.
JLB:JDF:PAS:CT:eg
Attachments:
1. Schedule A - Schedule to Calculate Appropriations Subject to Limit
2. Schedule B - Schedule of Appropriations
3. Schedule C - Schedule to Categorize Estimated Revenue
4. Schedule D - Schedule of Appropriations Subject to Limit
S. Resolution Adopting Appropriations Limitation
c:\wpfi1es\app1imit.agn
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Schedule A
CITY OF POWA Y
Schedule to Calculate Appropriations Subject to Limit
For the Fiscal Year Ended June 30, 1996
Appropriations Limit 1981-1982 $7,047,200
CPI Fiscal Year 1982-1983 1.0679
Poway Change in Population 1-1-82 1. 00 1
CPI Fiscal Year 82-83 x Poway Change in
Population 1-1-82 x 1.0690
Appropriations Limit 1982-1983 $7,533,457
California Personal Per Capita Income for
Fiscal Year 1983-1984 1.0235
Poway Change in Population 1-1-83 1. 0760
California Per Capita Income for Fiscal Year
1983-1984 x Poway Change in Population 1-1-83 x 1.1013
Appropriations Limit 1983-1984 $8,296,596
U.S. Consumer Price Index (CPI) 1.0474
Poway Change in Population 1-1-84 1.0132
U.S. CPI for Fiscal Year 1984-1985 x Poway
Change in Population x 1. 0612
Appropriations Limit 1984-1985 $8,804,348
Poway Change in Population 1-1-85 1. 0190
U.S. Consumer Price Index (CPI) 1. 0374
U.S. CPI for Fiscal Year 1985-1986 x Poway
Change in Population x 1. 0571
Appropriations limit 1985-1986 $9,307,076
Poway Change in Population 1-1-86 1.0490
U.S. Consumer Price Index (CPI) 1.0230
U.S. CPI for Fiscal Year 1986-1987 x Poway
Change in Population x 1.0731
Appropriations Limit 1986-1987 $9,987,423
.- Attachment 1
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Schedule A
Page 2
CITY OF POWAY
Schedule to Calculate Appropriations Subject to Limit
For the Fiscal Year Ended June 30, 1996
Appropriations Limit 1986-1987 $9,987,423
Poway Change in Population 1-1-87 1. 0325
Poway Nonresidential Growth Rate 1.5270
Poway Nonresidential Growth Rate for Fiscal Year
1987-1988 x Poway Change in Population x 1.5766
Appropriations Limit 1987-1988 $15,746,171
Poway Change in Population 1-1-88 1.0463
Poway Nonresidential Growth Rate 1.1650
Poway Nonresidential Growth Rate for Fiscal Year
1988-1989 x Poway Change in Population x 1.2189
Appropriations Limit 1988-1989 $19,193,008
Poway Change in Population 1-1-89 1.0450
Poway Nonresidential Growth Rate 2.7515
Poway Nonresidential Growth Rate for Fiscal Year
1989-1990 x Poway Change in Population x 2.8753
Appropriations Limit 1989-1990 $55,185,656
Poway Change in Population 1-1-90 1.0304
Poway Nonresidential Growth Rate 1.1274
Poway Nonresidential Growth Rate for Fiscal Year
1990-1991 x Poway Change in Population x 1.1617
Appropriations limit 1990-1991 $64,109,176
Poway Change in Population 1-1-91 1. 0356
U.S. Consumer Price Index (CPI) 1.0480
U.S. CPI for Fiscal Year 1991-1992 x Poway
Change in Population x 1. 0853
Appropriations Limit 1991-1992 $69,577,689
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Schedule A
Page 3
C!TY OF POWA Y
Schedule to Calculate Appropriations Subject to Limit
For the Fiscal Year Ended June 30, 1996
Appropriations Limit 1991-1992 $69,577,689
Poway Change in Population 1-1-92 1.0236
Capital Per Capita Income .9936
California Per Capita Income for Fiscal Year
1992-1993 x Poway Change in Population x 1.0170
Appropriation Limit 1992-1993 $70,760,510
Poway Change in Population 1-1-93 1. 0199
Capital Per Capita Income 1.0272
California Per Capita Income for Fiscal Year
1993-1994 x Poway Change in Population x 1. 0476
Appropriation Limit 1993-1994 $74,128,710
Poway Change in Population 1-1-94 1.0111
Capital Per Capita Income 1. 0071
California Per Capita Income for Fiscal Year
1994-1995 x Poway Change in Population x 1.0183
Appropriation Limit 1994-1995 $75,485,265
Poway Change in Population 1-1-95 (1.0119)
Capital Per Capita Income 1.0472
California Per Capita Income for Fiscal Year
1995-1996 x Poway Change in Population x 1.0366
Appropriation Limit 1995-1996 $78,248,026
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Schedule B
CITY OF POWA Y
Schedule of Appropriations
For the Fiscal Year Ended June 30, 1996
General Fund
Legislative and Administrative $ 948,865
Administrative Services 1,148,399
Community Services 2,785,600
Planning Services 1,157,180
Public Services 1,146,373
Safety Services 7,203,550
Engineering Services 1.325.801
Subtota 1 $15,715,768
Soecial Revenue Funds
Street Imorovement-Gas Tax $ 844,400
Orainaqe Fund
Administrative Services $ 18,423
Public Services 321,178
Engineering Services 8.811
348,412
Grant Funds
Capital Projects 223,000
Street Develooment/Proo A
Public Services 871. 688
Subtota 1 $ 2,287,500
Soecial Assessment Fund
Public Services $ 1,506,888
Water Fund
Administrative Services $ 849,918
Engineering Services 51,886
Legislative/Admin Services 114,321
Public Services 7.608.193
Subtotal $ 8,624,318
Attachment 2
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Schedule B
Page 2
Schedule of Appropriation
For Fiscal Year Ended June 30, 1996
Sewer Fund
Administrative Services $ 509,912
Engineering Services 52,932
Legislative/Admin Services 80,024
Public Services 4.773.800
Subtota 1 $ 5,416,668
Caoital Proiects Fund
Drainage Improvement $ -
Caoital Reolacement Fund
Operating Expense $ 798.268
GRAND TOTAL - ALL CITY APPROPRIATIONS SJ4.349.410
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Schedule C
CITY OF POWA Y
Schedule to Categorize Estimated Revenue
For Fiscal Year Ended June 30, 1995
Total Exclude Net
Genera 1 Fund
Taxes $ 7,471,630 $ - $ 7,471,630
Franchise 618,000 - 618,000
License & Permits 294,050 294,050 -
Fines & Forfeitures 96,600 96,600 -
(I)Revenue from Use of Money 618,886 216,472 402,414
Revenue from Use of Property 403,164 403,164 -
Revenue from Other Agencies 1,720,620 - 1,720,620
Current Fees &.Services 4,333,470 4,333,470 -
Other Revenue 482.910 482.910 -
Total General Fund $16,039,330 $ 5,826,666 $10,212,664
Street Imorovement - Gas Tax $ 844,400 $ - $ 844,400
Park Imorovement 190,000 190,000 -
Drainaqe Fund 646,090 259,790 386,300
Grant Fund 496,620 496,620 -
Assessment Districts 1,614,590 1,469,400 145,190
Street Develooment Fund 175,590 175,590 -
Proo. A Fund 1,201,860 - 1,201,860
Municioal Imorovement (730) (730)
Communitv Facilitv Acquisition 590 590 -
Debt Service 409,470 409,470 -
Communitv Facilities Debt Service 2,939,420 2,939,420 -
Water Fund 10,959,960 10,959,960 -
Sewer Fund 5,316,030 5,316,030 -
Caoital Reolacement 924,290 924,290 -
Trust 72.230 72.230 -
ESTIMATED GRAND TOTAL ALL FUNDS lil.829.740 F9.039.326 ~12.790.414
(1) Interest income to be excluded is computed as:
Exclusion before interest x total interest = excluded interest
Total revenue
Attachment 3
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Schedule D
CITY OF POWA Y
Schedule of Appropriations Subject to Limit
Fiscal Year 1981-1982 Through Fiscal Year 1993-1994
Actuals as Well as Estimated Figures for Fiscal Year 1994-1995
Through Fiscal Year 1995-1996
Fiscal Year 1981-1982
Total All City Appropriations $10,165,924
Less: Non-proceeds of Taxes 8.599.062
Total Appropriations
Subject to Limit $ 1,566,862
Less Appropriation Limit 7.047.200
Amount Under Proposition 4 Limit $ 15.480.338\
Fiscal Year 1982-1983
Total All City Appropriations $12,141,258
Less: Non-proceeds of Taxes 8.857.546
Total Appropriations
Subject to Limit $ 3, 283 , 712
Less Appropriation Limit 7.533.457
Amount Under Proposition 4 Limit $ 14.249.745\
Fiscal Year 1983-1984
Total All City Appropriations $16,498,389
Less Non-proceeds of Taxes 11.332.100
Total Appropriations
Subject to Limit $ 5,166,289
Less Appropriation Limit 8.296.596
Amount Under Proposition 4 Limit $ 13.130.307\
Fiscal Year 1984-1985
Total All City Appropriations $16,709,874
Less: Non-proceeds of Taxes 10.580.552
Total Appropriations
Subject to Limit $ 6,129,322
Less Appropriation Limit 8.804.348
Amount Under Proposition 4 Limit $ 12.675.026\
Fiscal Year 1985-1986
Total All City Appropriations $16,989,076
Less: Non-proceeds of Taxes 9.891. 514
Total Appropriations
Subject to Limit $ 7,097,562
Less Appropriation Limit 9.307.076
Amount Under Proposition 4 Limit $ 12.209.514\
Attachment 4
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Schedule D
Page 2
Fiscal Year 1986-1987
Total All City Appropriations $16,226,940
Less: Non-proceeds of Taxes 9.181.944
Total Appropriations
Subject to Limit $ 7,044,996
Less Appropriation Limit 9.987.423
Amount Under Proposition 4 Limit $ 12.942.427\
Fiscal Year 1987-1988
Total All City Appropriations $19,687,140
Less: Non-proceeds of Taxes 11. 744.337
Total Appropriations
Subject to Limit $ 7,942,803
Less Appropriation Limit 15.746.171
Amount Under Proposition 4 Limit S 17.803.368\
Fiscal Year 1988-1989
Total All City Appropriations $23,727,890
Less: Non-proceeds of Taxes 13.465.358
Total Appropriations
Subject to Limit $10,262,532
Less Appropriation Limit 19.193.008
Amount Under Proposition 4 Limit $ 18.930.476\
Fiscal Year 1989-1990
Total All City Appropriations $27,214,810
Less: Non-proceeds of Taxes 15.923.130
Total Appropriations
Subject to Limit $11,291,680
Less Appropriation Limit 55.185.656
Amount Under Proposition 4 Limit $143.893.976\
Fi scal Year 1990-1991
Total All City Applications $28,427,668
Less: Non-proceeds of Taxes 16.118.066
Total Appropriations
Subject to Limit $12,309,602
Less Appropriation Limit 64.109.176
Amount Under Proposition 4 Limit $151. 799.574\
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Schedule D
Page 3
Fiscal Year 1991-1992
Total All City Appropriations $27,677,240
Less: Non-proceeds of Taxes 16.644.089
Total Appropriations
Subject to Limit $11 ,033, 151
Less Appropriation Limit 69.577.689
Amount Under Proposition 4 Limit $158.544.538\
Fiscal Year 1992-1993
Total All City Appropriations $29,037,253
Less: Non-proceeds of Taxes 17.750.379
Total Appropriations
Subject to Limit $11 ,286,874
Less Appropriation Limit 70.760.510
Amount Under Proposition 4 Limit $159.473.636\
Fiscal Year 1993-1994
Total All City Appropriations $31,209,958
Less: Non-proceeds of Taxes 17 .184.377
Total Appropriations
Subject to Limit $14,025,581
Less Appropriation Limit 74.128.710
Amount Under Proposition 4 Limit $160.103.129\
Fiscal Year 1994-1995
Total All City Appropriations $32,738,000
Less: Non-proceeds of Taxes 20.213.613
Total Appropriations
Subject to Limit $12,524,387
Less Appropriation Limit 75.485.265
Amount Under Proposition 4 Limit $162.960.878\
Fiscal Year 1995-1996
Total All City Appropriations $34,349,410
Less: Non-proceeds of Taxes 21. 558. 996
Total Appropriations
Subject to Limit $12,790,414
Less Appropriation Limit 78.248.026
Amount Under Proposition 4 Limit $165.457.612\
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RESOLUTION NO. 95-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
ADOPTING AN APPROPRIATIONS LIMIT FOR
FISCAL YEAR ENDING JUNE 30, 1996
WHEREAS, the Gann Initiative or Proposition 4, hereby referred to as Article
XIIIB of the Constitution of the State of California, was passed by the people; and
WHEREAS, Article XIIIB mandated an appropriations limit on various units of
government, including the City of Poway; and
WHEREAS, that limit has been calculated by the Finance Division of the City of
Poway using current gUidelines provided by the League of California Cities; and
WHEREAS, the City Council of the City of Poway desires to formally adopt that
appropriations limit for the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway that
in accordance with Article XIIIB of the Constitution of the State of California, the
appropriations limit for the City of Poway for Fiscal Year 1995-1996 is $78,248,026.
PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway,
California, at a regular meeting thereof this 27th day of June 1995.
Don Higginson, Mayor
ATTEST:
MarJorie K. Wahlsten, City Clerk
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