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Item 7 - Appropriation Limitation4 AGENDA REPORT � � OF _ oW CITY OF POWAY ti Low 1` THE C� Y I TO - HonorableMayor and Mmbers of the City Council FROM: James L. Bowersox, City Mara INITIATED BY: John D. Fitch, Assistant City Manager-' Greg Hill, Finance Manager DATE: June 10, 1986 SUBJECT: Appropriations Limitation Goverment Code Section 7910 requires each local government to establish its Proposition 4 appropriations limit by resolution each year at a regularly _sche- duled meeting or a noticed special meeting. Proposition 4 was adopted by the voters on November 6, 1979, and game 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. Using this data, the appropriation limit for fiscal year 1982-1983 was calculated to be $7,533,457 for fiscal year 1983-1984 was calculated to be $8,296,596; for fiscal year 1984-1985 was calcu- lated to be $8,804,348; and for fiscal year 1985-1986 was calculated to be $9,307,076 } 3 The State Department of Finance has notified the City that the increase in the United States Consumer Price Index equaled 2.30 percent and the growth in popu- lation for 1985 equaled 4.90 percent. Therefore,, the City appropriation limit for fiscal year 1986-1987 is adjusted by these factors to equal $9,987,423. ACTION: ICN• f P 1 Of �JUN�? ;o5 ITEM t 9 F F { Agenda Report Appropriations Limitation June 10, 1986 Page 2 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. Attachedplease find a copy of -a resolu- tion which establishes the city of Poway's appropriation limit for fiscal year 1986-1987. It should be noted that Proposition 4 limits appropriations of proceeds of taxes only. Proceeds of taxes include such revenues as property taxes, sales and use taxes, transient occupancy taxes and most of the general funds State subven- tions.. 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 1986-1987 based upon the above criteria, it was determined that the appropriation of proceeds of taxes subject to the Proposition 4 limitation equals $7,044,996 which is below the City's appropriation limit of $9,987,423 by $2,942,427. it is recammended that the City Council adopt the attached resolution establishing the City's appropriation limit for fiscal year 19861987 as required by Government` Code Section 7910. ":,MF. GH.cb, 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 Lii.t 5. Resolution Adopting Appropriations -Limitation 3 Schedule CITY OF POWAY Schedule to Calculate Appropriations Subject to Limit For the Fiscal Year ceded June 30, 1986 Appropriations Limit 1981-1982 $7,047,200 C.P.I. Fiscal Year 1982-•1983 100679 Poway Change in Population 1-1-82 1.001 C.P.I. Fiscal Year 82-83 x Poway Change in Population 1-1-82 x 1.0690 ' ns Li 1982-1983 Appropriatio L $7,533,457 California Personal Per Capita Inca for Fiscal Year 1983-1984 1.0235 PowayChange in Population 1-1-83 - y 1.0760 Cplifornia Personal.: Per Capita Incomeu �rJ 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 1.0474 l; Poway Change in Population 1-1-84 1.0132 U.S. Consumer Price Index for Fiscal Year 1984-1985 x Poway Change in Poulation x 1.0612 Appropriations Limit 1984-1985 $8,804,348 Poway Change in Population 1-1-85 1.0190 U.S. Consumer Price Index 1.0374 U.S. Consumer Price Index for Fiscal Year 1985-1986 x Poway Change in Population 9, 1.0571 Appropriations Limit 1985-1986 $9,307,076 I Poway Change in Population 1-1-86 1®0490 f U.S. Consumer Price Index... 1.0230 U.S. Consumer Price Index for Fiscal Year 1986-1987 x Poway Change in Population x 1.0731 Appropriations Limit 1986-1987 $9,987,423 o: j uN it) L M i G MEM 3 of 9 Schedule B CITY OF POWAY Schedule of Appropriations - For the Fiscal. Year Ended .lune 30, 1987 General Fund Legislative and Administrative' $ 696,337 ' z Administrative Services 889,olo ca munity Services 11506,645 Planning Services 856,360 Public Services 11231,796 t` Safety Services 3,853,136 Subtotal $9,033,284 Sial Revenue Funds Street Lnprovement-Gas Tax t: Public Services $694,120 Capital Projects 39,700 #' Subtotal $ 733,520 ; Park 5n�rov�nt 451, 900 x a Drainage Fund 226,437 Revenue Sharing -0' J Grant Funds 132,441 Street Development -0s Subtotal. $1,544,598 Special Assessment Fund Public Services $ 87,353 Municipal Improvement Fund -0- Attachment 2 4 Of 9 JUN 10 1986 ITEI'll , k f _ Schedule B 2 Page Schedule of Appropriations k , For Fiscal Year Ended dune 30', ,1987 E Water Fund Administrative Services $' 237,825 Caamunity Services 43,566 Public Services 3r499,420 �. Subtotal $ 3,780,420 Sewer Fund Administrative Services $ 148,022 Public Services 1,482,913 Subtotal 1,630,935 Capital Replacement Fund operating Expense $'' 150,350 Trust Funds _0 Grand Total All City Appropriations $16,226,940 _ . 1 j z j 5 of 9 �;U! IT r i 6 of 9 JUN 1.0 1986 1T E iVi Schedule C CITY OF POWAY ; Schedule to categorize Estimated Revenue For Fiscal Year Eroded: June 30, 1987 Total Exclude Net General Fund Taxes $ 4,603,650 $ --- $48603,650 Franchise -291,700 --- 291,700 License & Permits _ 332,550 332,550 -- Fines -& Forfeitures 172,000 172, 000 --- tla Revenue from Use of Money 657,800 167,484 490,316 Revenue frcam Use of Property 64,355 64,355 -- Revenue Other Agencies lr659,330 -- 1,659,330 Current Fees & Services 1,884,760 1,884,760 -- other Revenue 10,1000 10, 000 --- Total General Fund_ $ 9,676,145 $ 2,631,149 $7,044,996 Street Improvement - Gas Tax $ 822,380 $ 822,380 $ -- Park improvement 409,450 409,450 --- Drainage Fund 590,600 590,600 Revenue Searing 39,700 39,700 CDBG Fund 584,940 584,940 -- Grant Fund 127r348 127,348 -- ` Assessment Districts 25,936 25,936 -- Street Development Fund 385,900 385,900 -- fMunicipal Improvement 22,300 22,300 Debt Service 186,700 186,700 -- ;nZater Fund 5,678,318 51678,318 Sewer Fund 21778,052 2,778,052, Capital Replacement 489,380 489r380 --- Trust Funds 5,140 50,140 ESTIMATED GRAND TOTAL ALL FUNDS $21,822,289 $14,777,293 $7,044,996 (1) Interest inane to be excluded is ccoputed as: exclusion before interest x total interest = excluded interest total. revenue 6 of 9 JUN 1.0 1986 1T E iVi - i g z Schedule D CITY OF POWAY schedule of Appropriations Subject to Limit Fiscal Year 1981-1982, Fiscal Year 1982:1983, Fiscal Year 1983-1984 and Fiscal Year 1984-1985 Actuals Fiscal Year 1985-1986 and Fiscal Year 1986-1987 Estimated Fiscal Year 1982-1982 Total All City Appropriations $101,165,924 Less: Non-Proceeds of 'Taxes 8,.599,062 Total Appropriations Subject To Limit $ 115661862 Less Appropriation Limit 7,047,204 t Amount Under Proposition 4 Limit $( 5,480,338)' 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 $t 4,249,745) `-' Fiscal Year 1983-1984 Total All City Appropriations $16,498,389 Less Non-Proceeds of Taxes 11,332,100 3 Total Appropriations Subject To Limit $ 51166,289 Less Appopr riation Limit 81296,596 rJa Amount Under Proposition 4 Limit $( 3,130,307) Fiscal. Year 1984 1985 Total All City Appropriations $16,709,874 I Less: Non Proceeds of Taxes 100,580,552 Total Appropriations Subject To Limit $ 61129,322 C Less Appropriation Limit 8,804,348 Arr-Ount Under Proposition 4 Limit $( 21675,026) 7 of 9 JUN 1.0 1986 ITEM !r Schedule D Page 2 Fiscal Year 1985-1986 Total All City Appropriations $161563,912 Less: Ivan -Proceeds of Taxes 10,1811422 Estimated Appropriations Sub- ject to Limit for Fiscal Year 1985-19861 $ 6,382,490 Less Appropriation Limit 9,307,076 Amount Under Proposition 4 Limit $( 2,924,586) Fiscal Year 19861987 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'Limt $ 2,942,427} { i 8 of 9 JUN 10 1986 ITEM l RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA,; ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR ENDING JUNE 30, 1987 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 wNEREPS, Article XIIIB mandated an appropriations limit on various units of goverrtunt, including the City of Poway; and wUEREAS, 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 hEREAS, 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 Cal ifornia, the appropriations' limit for the City of Poway for Fiscal Year 1986-1987 is $9,987,423. PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway, California, at a regular meeting thereof this 10th day of June, 1986. Carl R. Kruse, Mayor ATTEST: Marjorie K. Wahlsten, City Clerk 9 JL 0 JUN 3. 0 1986 ':