The URL can be used to link to this page

Home My Public Portal About17) 8C Public Hearing - Annual Appropriations Limit for FY 2018-19AGENDA ITEM 8.C. ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: June 19, 2018 TO: The Honorable City Council FROM: Bryan Cook , City Manager By : Julia James, Interim Administrative Services Director SUBJECT: PUBLIC HEARING -ADOPTION OF RESOLUTION NO. 18-5336 ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR (FY) 2018-19 RECOMMENDATION: The City Council is requested to : 1. Receive presentation from staff; 2 . Open the public hearing ; 3. Receive public input; 4. Close the public hearing ; and 5. Adopt Resolution No . 18-5336 adopting the annual Appropriations Limit (Limit) for FY 2018-19 . BACKGROUND: 1. In November 1979, Proposition 4 was approved by the voters adding Article XIIIB , also known as the Gann Limitation , to the State Constitution to insure that limits were placed on all state and local government appropriations . These appropriations calculations must be approved by the City Council on an annual basis. 2 . In 1980 , the State Legislature added Section 9710 of the Government Code stating that the governing body of each City must establish, by resolution , an appropriations limit for the following year. 3 . In June 1990 , the voters of California approved Proposition 111 which revised the annual adjustment factors applied to the 1986-87 Limit and each year thereafter. City Council June 19 , 2018 Page 2 of 2 4 . On June 7 , 2018 , Notice of the Public Hearing to establ ish the Limit subject to the Cal ifornia Constitution was published in the Temple City T ribune. ANALYSIS : Article XIII-B provides limits to the amount of tax proceeds state and local governments can spend each year. The lim it for any fiscal year is equal to the previous year's limit, adjusted for population changes and the change i n the U .S . Consumer Price Index or California per capital personal income, whichever is less . Staff has complied with all the provisions of Article XIIIB in determining the Limit for FY 2018-19 , and the City Council is required to confirm all factors used for calculating the Limit by adoption of a resolution. For FY 2018-19, the California Per Capita Income and the population growth of the County were applied to the FY 2017-18 Lim it. The City of Temple City's Lim it for FY 2018-19 is $21 ,028 ,001 , with appropriations subject to the Limit of $11 ,329,400 , or $9 ,698 ,601 below the Lim it. CITY STRATEGIC GOALS: In order to be in compliance with California State law, adoption of Resolution No . 18-5336 by the City Council will promote or further the City's Strategic Goal of Good Governance . FISCAL IMPACT: Adoption of this Resolution does not have an impact on the FY 2018-19 City Budget. ATTACHMENT: A. Resolution 18-5336 ATTACHMENT A RESOLUTION NO. 18-5336 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY , CALIFORNIA ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR (FY) 2018- 2019 WHEREAS , the voters of California in November, 1979 added Article X IIIB (Proposition 4 ) to the State Constitution placing various limitations on the appropriations of the State and local governments ; and WHEREAS , the voters of California in June , 1990 modified Article X IIIB by approving Proposition 111 and SB 88 (Chapter 60/90) which revised the annual adj ustment factors to be applied to the 1986-87 Limit and each year thereafter; and WHEREAS , the City of Temple City has calcu lated the Appropriations Limit by adjusting the 1986-87 Lim it for annual changes in the cost of living and population growth ; and WHEREAS , the City of Temple City has comp lied with all the provis ions of Article X IIIB in determin ing the Appropriations Lim it for FY 2018-19 as provided in the worksheets attached hereto as Exhib it 1. NOW, THEREFORE , the C ity Council of the C ity of Tem ple C ity does reso lve , determ ine and order as follows : SECTION 1. That the Appropriations Lim it for FY 2018-19 sha ll be $21 ,028 ,001 , with appropriations subject to the lim it of $11,329,400, or $9 ,698,601 less than the lim it. SECTION 2 . The City Clerk shall certify to the adoption of this resolution . APPROVED AND ADOPTED this 19th day of June , 2018 . W illiam Man , Mayor ATTEST: APPROVED AS TO FORM : Peggy Kuo , C ity Clerk Eric Vail , City Attorney EXHIBIT 1, Page 1 ARTICLE XIII-B OF THE CALIFORNIA CONSTITUTION (GANN INITIATIVE) Effective July 1, 1980, Proposition 4 (Gann) established a li mit on the C ity's expend itures from ta x revenues based on 1978-79 appropriat ions . This limit is adjusted annually by the Consumer Price Index and population changes . No n-Proceeds of Tax es (Fines and Forfe itures and Use r Fees) were not subject to th is limit. In 1989-90 Proposition 111 was passed , which changed the base year to 1986-87 and all ows cities to adjust the lim it annually by e ithe r the change in the California per capita income or the percent age change in growth in total assessed va luation due to non res idential construct ion . For popu lati on changes , cit ies now have the optio n of using e ither the percentage increase of the City or t he percentage increase of the entire cou nty . The law also allows for the exc lusion from the li mit of "qualified cap ital outlay" wh ic h incl udes any appropriati on for fixed asset s costing over $100 ,000 . The 2018-20 19 budget expenditures are well with in the statutory lim it. It should be noted that future revenues ex ceeding the limitation requ ire a return of the ex cess to the taxpayers or a substantia l portion of such excess wi ll be f orfe ited fo r Sta t e uses . COMPUTATION OF APPROPRIATIONS LIMIT 2018-2019 APPROPRIATIONS LIMIT 2017 -1 8 1im it (1) Per Cap ita Income and City popu lation change factor appl ied to 2017 -18 appropriations lim it 2018-20 19 appropriations lim it APPROPRIATIO NS SUBJECT TO LIMIT Proceeds of Taxes Less Exclusions : Qua li f ied Capital Outlay Appropriations Subject to Lim it Appropriat ions Margin $20 ,180,423 1.0420 $21 ,0 28 ,00 1 $12 ,076,400 747 ,000 $11 ,329,400 $9 ,698 ,601 (1) Recalcuted as a resu lt of Propos ition 111 and in acco rdance w ith guide lines of the League of California Cities . Formal adoption for the FY 1991-92 reca lcu la ted app ropriations li m it was approved by the City Counci l on July 2 , 1991. CITY : TEMPLE CITY FY : 2018-19 REVENUE TAXES : Property Tax Sales & Use Tax /In Lieu Sales Tax Business License Tax Revenue Transient Occupancy Tax Other Taxes : Real Estate Prop . A I Prop . C FROM STATE : Motor Vehicle In Lieu /In Lie u VLF State Cops Grant Gasoline Tax Traffic Congestion Relief Used Oil State Recycling /Litte r Funds State Office of the Traffic Safety Grant SB1 OTHER GOVERNMENTS Commun ity Development (CDBG) Park Bond 1992 & 1996 Fede ral Law Enforcement Block Grant SB821 Aid to Cities A ir Quality Improvement Meas ure M Meas ureR LO CAL Special benefit assessments Franchise fees Development fees -Sewer/Park/Pub lic Arts Fines ,forfeitures ,penali ties/Traffic Safety Recyclable Revenue AB939 Reimbursement Trus t Fund/Self Ins. Fund USER FEES Building Permits Parking Permits Encroachment Perm its An imal Licen se V ehicle Impound Code En forcement Shared Maint./Facility Rental Zoning & Plan Check Recreation PW Engineering OTHER MISCELLANEOUS Bus Pass Sales Mise Sundry/Other Reimb Rental Income CRA and ULD Adm in Reimb CALCULATION O F PROCEEDS OF TAXES Worksheet #1 Page 1 of 2 I ·• : -:- PROCEEDS OF TAXES 3 ,439 ,700 2 ,100,000 200 ,000 60 ,000 200 ,000 1,314 ,500 7,314 ,200 4 ,632 ,600 .. : · .. •••••••••••••• •::< .• .. I . '::· . .. 4 ,632 ,600 ::,:•>> •. >. ·:: ·:: ·•>'=•·>•· ::.:·:::::.: : ....... --.... ,·-.:: .. .-.. >:' 0 •• :-. . . . . : .· .. :·. ···-·· ... 0 : : ~ : . : : : :-: :-: . . :, >•· . : :. -: ... : :, \> 0 ·•·· :•'•.<. .. <·':' s < • : w 0 Funds Included : NO '-PROCEEDS OF TAXES . : '.,. ::::::: ;.::::.: :·•:>:'.'•:::. :::::::::: •' 0 :::·r. 140,100 889,500 0 10,000 0 0 606,500 1 ,646 ,100 179,000 14,500 0 86 ,000 47,400 502 ,150 444 ,000 1,273,050 1,485 ,000 530,000 80,000 47 5,000 25,000 15,000 500 2,610,500 950,000 227 ,000 160,000 43 ,000 11 ,000 70 ,000 58 ,350 707 ,000 566 ,300 67,000 2 ,859,650 75,000 114,000 24,000 35,000 248,000 Exhib it 1, Page 2 31-May-18 ALL TOTAL 3 ,439 ,700 2 ,100,000 200 ,000 60 ,000 200 ,000 1,3 14 ,500 7 ,314 ,200 4 ,632 ,600 140,100 889,500 0 10,000 0 0 606,500 6 ,278 ,700 179 ,000 14 ,500 0 86 ,000 47,400 502 ,150 444 ,000 1,273 ,050 1,485,000 530 ,000 80 ,000 475 ,000 25 ,000 15 ,000 500 2 ,6 10 ,500 950,000 227,000 160,000 43 ,000 11 ,000 70,000 58 ,350 707 ,000 566,300 67 ,000 2 ,859 ,650 75 ,000 114 ,000 24 ,000 35 ,000 248,000 CITY: TEMPLE CITY FY : 2018-19 REVENUE SUB TOTAL (For Worksheet #3) INTEREST EARNINGS (From Worksheet #3) TOTAL (Use For Worksheet #4) CALCULATION OF PROCEEDS OF TAXES Worksheet #1 Page 2 of 2 PROCEEDS OF TAXES 11 ,946,8oo 1 129,6oo 1 12,o16,4oo 1 Fu nds Included: NO -P RO CEE DS OF TAXES 8 ,637 ,3oo 1 11o,4oo 1 8,747,7oo 1 Exhibit 1 , Page 3 31-May-18 ALL TOTAL 20,584,1 oo 1 24o ,ooo 1 20 ,824,1 oo 1 CITY : TEMPLE CITY FY : 20 18-19 A. Non -In terest Tax Proceeds B. Minus Exc lus ions C. Net Invested Taxes D. Tota l Non-Inte rest E. Tax Proceeds as Percent of Budget F. Interest Earn ings G. Amount of Interest Earned from Taxes H. Amount of Interest Earned from No n-Taxes INTEREST EARNINGS PRODUCED B Y TAXES W o rk sh eet #2 Page 1 of 1 AMOUNT 11 .946 ,8oo I 747 ,ooo I 11,199 .8oo I 20 ,584 ,1 oo I 54 %1 24o.ooo 1 129 ,6oo 1 SOURCE (Worksheet #2 ) GF Cap ical Project (A-B) (Worksheet #2 ) (C I D) (B udget or Actual) (E *F) L._ __ __:.1 ...:...10:::..!,...:...40::..:0:....~I (F -G ) plus any CRA lnt, Restricted CIP) I. Take results of Steps #G and #H copy to wo rksheet #2 Exh ibit 1 , Page 4 31-May-18 CITY : TEMPLE CITY FY: 2018-19 A. Proceeds of Taxes B. Exclusions C . Appropriat ions subje ct to Limitation D. Current Year Limit E . Over/(Under) Limit CAPITAL PROJECTS General Fund General Fund (MO E) TDA Gas Ta x SB1 Prop A Prop C CDBG SB821 Traffic Congestion Relief MeasureR Measure M AQMD ULD Park Acq 92/96 Park Bond 1 996 Park Bond Sewer Reconstruction Public Arts Fund Surface Transp Prgm-Loca l Rubberized Asphalt Concrete Grant Congestion Mitigation and Air Quality *PRO JECTS UNDER $100 ,000 (G ENERAL FUND) APPROPRIATIONS SUBJECT TO LIM ITATION Worksheet #3 Page 1 of 1 Amount 12 ,o76,4oo 1 747 .ooo 1 11 ,329,4oo 1 21 .o28 .oo1 1 {9.698 ,601 ~ 1 PROCEEDS 699 ,000 180,000 879 ,000 {1 32 ,000~ 747 ,000 Source (Worksheet #2) GF Capical Project (A-B) (Worksheet #6) (C-D) NON -PROCEEDS 86,000 0 604,000 0 0 0 750 ,000 400,000 0 0 46,000 0 0 0 0 437 ,300 0 0 2 ,323,300 Exh ibit 1 , Page 5 31-May-18 2018-19 : 1-1-1 7 1-1-18 A . LAST YEAR'S LIMIT B. ADJUSTMENT FACTORS : APPROPRIATIONS LIMIT CALCULATION Worksheet #4 City Popu lat ion Page 1 of 1 Percent 0 .4 8%1 Amount $2o , 180,423 I County Popu lat ion 10,22 1 ,926 10,27 4 ,346 Source 1. Population % (greate r of City or County facto ~-------:-;1.'-=-0-=-05::::1:-il (Worksheet #5) 2. Infl ation % (f rom State Finance or Assessor)'-· ___ __.:.;1.~0.::;.;36"-'7-'. C . ANN UAL AI Total Adjustment Factor D. OTHER ADJUSTM ENTS : Lost Responsibility (-) T rans fer to private(-) Transfer to fees (-) Assumed Responsibil ity (+) E . TOTAL ADJUSTMENTS Sub-total F. THIS YEAR'S LIMIT 1 .o42o I 847 ,578 I ol 847 ,578 I $21,o28,oo1 1 (C1 * C2) (A* B) (C + D) (A + E) Exhibit 1, Page 6 Percent 0 .51 %1