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Home My WebLink AboutAgenda Packet - July 5, 2005 - CC I)MP • 'ALUSA. CONSENT CALENDAR TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: HENRY QUINTERO, ACTING FINANCE DIRECTOR VIA: F. M. DELACH, CITY MANAGER?AO DATE: JULY 5, 2005 SUBJECT: APPROPRIATIONS LIMIT RECOMMENDATION It is recommended that City Council approve the attached resolutions adopting the Amended Appropriations Limit of $31,785,065 for the 2004/05 fiscal year and the Appropriation Limit of $35,376,142 for the 2005/06 fiscal year. BACKGROUND The Appropriations Limit is a state-mandated calculation which is required to be approved by the City Council by July 1St for the new fiscal year. The Appropriations Limit sets the annual cap for spending tax proceeds. There was a calculation error in the preparing of the 2004/05 Limits. The amount previously approved was $31,763,306, the revised amount is $31,785,065 an increase of $21,759 or .07%. Based on calculations attached to the Resolution, the City is under the cap for FY2005/06 by $11,206,206. FISCAL IMPACT The resolutions set the FY2004/05 Appropriations Limit at $31,785,065 and $35,376,142 for the FY 2005/06. • RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING AN AMENDED APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2004-05 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, in June of 1990, the voters of the State of California enacted Proposition 1 1 1, "The Traffic Congestion Relief and Spending Limitation Act of 1990";and WHEREAS, this Act amended Article XIIIB of the Constitution of the State of California regarding spending limitations of cities; and WHEREAS,Article XIIIB of the California Constitution provides that the total annual appropriations subject to limitation of each governmental entity, including this City, shall not exceed the appropriation limit of such entity of government for the prior year, adjusted for changes in the cost of living or personal income and population, except as otherwise provided for in said Article XIIIB and implementing State Statutes; and WHEREAS,pursuant to said Article XIIIB of said California Constitution,and Section 7900 et seq.of the California Government Code, the City is required to set its appropriation limit for each fiscal year; and WHEREAS, the Acting Finance Director of the City of Azusa has caused a technical review to be made of the documentation for the City's said appropriation limitation,and has caused the numbers upon which the City's appropriation limit is based to be researched and said limit to be calculated; and WHEREAS,based on such calculations,as described in the attached documentation as Exhibit A and B,the Acting Finance Director has determined the said appropriation limit and,pursuant to Section 7910 of the said California Government Code, has made available to the public the documentation used in the determination of said appropriation limit; and WHEREAS,the City Council elects to utilize said calculations, which are attached for reference. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Azusa, California,that said appropriation limit for Fiscal Year 2004-05 shall be adopted in the amount of$31,785,065 for said Fiscal Year. PASSED AND ADOPTED this 5th day of July, 2005. MAYOR I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by the City Council of the City of Azusa at a regular meeting thereof held on the 5`h day of July, 2005. AYES : COUNCIL MEMBERS: NOES : COUNCIL MEMBERS: ABSTAIN : COUNCIL MEMBERS: ABSENT : COUNCIL MEMBERS: CITY CLERK • EXHIBIT A ANNUAL APPROPRIATIONS LIMIT CALCULATION FOR FISCAL YEAR 2004/05 Inflation Factor(selected higher of the following): Growth in the 3.28% State 1.0328 Factor California per Department of capita personal Finance income Growth in the 10.34% HdL Coren& 1.1034 Factor Selected for non-residential Cone Calculation assessed valuation due to new construction within the City Population Factor(selected higher of the following): City 2.25% State 1.0225 Factor Selected for Department of Calculation Finance County 1.38% State 1.0138 Factor Department of Finance Annual Limits Calculation: Appropriations Limit for FY 2003/04: $28,172,593 Adjustment factors for Fiscal Year 2004/05: Inflation Factor(A) Population Factor(B) 1.1034 1.0225 Combined Factor(A times B) 1.1282265 X .1282265 Adjustment for inflation and population: $ 3,612,472 Appropriations Limit for Fiscal Year 2004/05: $31,785,065 EXHIBIT B APPROPRIATIONS SUBJECT TO THE ANNUAL LIMIT FOR FISCAL YEAR 2004/05 A. PROCEEDS OF TAXES Property Tax $ 2,418,682 Non-Property Tax 8,297,588 Licenses and Permits 2,119,086 Intergovernmental Revenues 2,910,273 TOTAL PROCEEDS OF TAXES $15,745,629 B. EXCLUSION 0 C. NET INVESTED PROCEEDS OF TAXES $15,745,629 D. INTEREST ALLOCATION 362,543 E. APPROPRIATIONS SUBJECT TO LIMIT $16,108,172 F. APPROPRIATIONS LIMIT FOR FY 2004/05 (EXHIBIT A) $31,785,065 G. FY 2004/05 APPROPRIATIONS OVER(UNDER)LIMIT ($15,676.893) Prepared by R.Jara U:\WPROQCORRESPCMGENDA\GANNLimitReso.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2005-06 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, in June of 1990, the voters of the State of California enacted Proposition 1 1 1, "The Traffic Congestion Relief and Spending Limitation Act of 1990";and WHEREAS, this Act amended Article XIIIB of the Constitution of the State of California regarding spending limitations of cities; and WHEREAS,Article X1IIB of the California Constitution provides that the total annual appropriations subject to limitation of each governmental entity, including this City, shall not exceed the appropriation limit of such entity of government for the prior year, adjusted for changes in the cost of living or personal income and population, except as otherwise provided for in said Article X11IB and implementing State Statutes; and WHEREAS,pursuant to said Article XI11B of said California Constitution,and Section 7900 et seq.of the California Government Code,the City is required to set its appropriation limit for each fiscal year; and WHEREAS, the Acting Finance Director of the City of Azusa has caused a technical review to be made of the documentation for the City's said appropriation limitation,and has caused the numbers upon which the City's appropriation limit is based to be researched and said limit to be calculated; and WHEREAS,based on such calculations,as described in the attached documentation as Exhibit A and B,the Acting Finance Director has determined the said appropriation limit and, pursuant to Section 7910 of the said California Government Code, has made available to the public the documentation used in the determination of said appropriation limit; and WHEREAS,the City Council elects to utilize said calculations, which are attached for reference. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Azusa, California,that said appropriation limit for Fiscal Year 2005-06 shall be adopted in the amount of$35,376,142 for said Fiscal Year. PASSED AND ADOPTED this 5th day of July, 2005. MAYOR I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by the City Council of the City of Azusa at a regular meeting thereof held on the 5th day of July, 2005. AYES : COUNCIL MEMBERS: NOES : COUNCIL MEMBERS: ABSTAIN : COUNCIL MEMBERS: ABSENT : COUNCIL MEMBERS: CITY CLERK EXHIBIT A ANNUAL APPROPRIATIONS LIMIT CALCULATION FOR FISCAL YEAR 2005/06 Inflation Factor(selected higher of the following): Growth in the 5.26% State 1.0526 Factor California per Department of capita personal Finance income Growth in the 10.00% HdL Coren & 1.1000 Factor Selected for non-residential Cone Calculation assessed valuation due to new construction within the City Population Factor(selected higher of the following): City 0.70% State 1.0070 Factor Department of Finance County 1.18% State 1.0118 Factor Selected for Department of Calculation Finance Annual Limits Calculation: Appropriations Limit for FY 2004/05: $31,785,065 Adjustment factors for Fiscal Year 2005/06: Inflation Factor(A) Population Factor(B) 1.1000 1.0118 Combined Factor(A times B) 1.11298 X .11298 Adjustment for inflation and population: $ 3,591,077 Appropriations Limit for Fiscal Year 2005/06: $35,376,142 Prepared by Roseanna J.Jara Sr.Accountant-Redevelopment C:\Temp\GannLimitCalculation05.doc EXHIBIT B APPROPRIATIONS SUBJECT TO THE ANNUAL LIMIT FOR FISCAL YEAR 2005/06 A. PROCEEDS OF TAXES Property Tax $ 2,605,400 Non-Property Tax 13,101,500 Licenses and Permits 2,428,350 Intergovernmental Revenues 5,453,596 TOTAL PROCEEDS OF TAXES $23,588,846 B. EXCLUSION 0 C. NET INVESTED PROCEEDS OF TAXES $23,588,846 D. INTEREST ALLOCATION 581,090 E. APPROPRIATIONS SUBJECT TO LIMIT $24,169,936 F. APPROPRIATIONS LIMIT FOR FY 2005/06 (EXHIBIT A) $35,376,142 G. FY 2005/06 APPROPRIATIONS OVER(UNDER) LIMIT ($11,206,2061 (Item F Minus Item E) Prepared by Roseanna J.Jara Sr.Accountant-Redevelopment C:\Temp\GannLimitCalculation05.doc