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HomeMy Public PortalAboutCity Council_Resolution No. 23-5678_Adopting the Annual Appropriations Limit for Fiscal Year 2023-24_6/23/2023_RegularRESOLUTION NO. 23-5678 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR (FY) 2023- 2024 WHEREAS, the voters of California in November, 1979 added Article XIIIB (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 XIIIB by approving Proposition 111 and SB 88 (Chapter 60/90) which revised the annual adjustment factors to be applied to the 1986-87 Limit and each year thereafter; and WHEREAS, the City of Temple City has calculated the Appropriations Limit by adjusting the 1986-87 Limit for annual changes in the cost of living and population growth; and WHEREAS, the City of Temple City has complied with all the provisions of Article XIIIB in determining the Appropriations Limit for FY 2023-2024 as provided in the worksheets attached hereto as Exhibit 1. NOW, THEREFORE, the City Council of the City of Temple City does resolve, determine and order as follows: SECTION 1. That the Appropriations Limit for FY 2023-2024 shall be $26,430,230, with appropriations subject to the limit of $16,626,342, or $9,803,888 less than the limit. SECTION 2. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 23rd day of June, 2023. ATTEST: William Man, Mayor APPROVED AS TO FORM: Peggy Ktfo, City'Clerk Greg Murihy, City Attorney Resolution No. 23-5678 Page 2 of 2 I hereby certify that the foregoing resolution, Resolution No. 23-5678, was duly passed, approved and adopted by the City Council of the City of Temple City at a regular meeting held on the 23rd day of June 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmember—Sternquist, Vizcarra, Yu, Chavez, Man Councilmember — None Councilmember — None Councilmember -- None Peggy Kuo, City Clerk EXHIBIT 1, Page 1 ARTICLE XIII-B OF THE CALIFORNIA CONSTITUTION (GANN INITIATIVE) Effective July 1, 1980, Proposition 4 (Gann) established a limit on the City's expenditures from tax revenues based on 1978-79 appropriations. This limit is adjusted annually by the Consumer Price Index and population changes. Non -Proceeds of Taxes (Fines and Forfeitures and User Fees) were not subject to this limit. In 1989-90 Proposition 111 was passed, which changed the base year to 1986-87 and allows cities to adjust the limit annually by either the change in the California per capita income or the percentage change in growth in total assessed valuation due to non residential construction. For population changes, cities now have the option of using either the percentage increase of the City or the percentage increase of the entire county. The law also allows for the exclusion from the limit of "qualified capital outlay" which includes any appropriation for fixed assets costing over $100,000. The 2023-2024 budget expenditures are well within the statutory limit. It should be noted that future revenues exceeding the limitation require a return of the excess to the taxpayers or a substantial portion of such excess will be forfeited for State uses. COMPUTATION OF APPROPRIATIONS LIMIT 2023-2024 APPROPRIATIONS LIMIT 2022-23 limit $25,445,490 Per Capita Income and City population change factor applied to 2023-24 appropriations limit 1.0387 2022-2023 Appropriations Limit $26,430,230 APPROPRIATIONS SUBJECT TO LIMIT Proceeds of Taxes $16,626,342 Less Exclusions: Qualified Capital Outlay 0 Appropriations Subject to Limit $16,626,342 Appropriations Margin $9,803,888 EXHIBIT 1, Page 2 CALCULATION OF PROCEEDS OF TAXES Worksheet #1 Page 1 of 2 CITY: FY: REVENUE TEMPLE CITY 2023-24 TAXES: Property Tax Sales & Use Tax / In Lieu Sales Tax Business License Tax Revenue Transient Occupancy Tax Other Taxes: Real Estate Prop. A f Prop. C FROM STATE: Motor Vehicle In Lieu / In Lieu VLF State Cops Grant Gasoline Tax Used Oil SB1 Other Grants OTHER GOVERNMENTS Community Development (CDBG) SB821 Aid to Cities Air Quality Improvement Measure M Measure R Measure W LOCAL Special benefit assessments Franchise fees Franchise fees -In -lieu Development fees -Sewer/Park/Public Arts Fines, forfeitures, penalties/Traffic Safety AB939 Revenues AB939 Reimbursement USER FEES Building Permits Parking Permits Temporary Parking Permits Encroachment Permits Animal License Vehicle Impound Code Enforcement Shared Maint./Facility Rental Zoning & Plan Check EV Charging In -Lieu Sidewalks In -Lieu Streets SB1186 Fees Recreation PW Engineering Funds Included: ALL PROCEEDS NON -PROCEEDS OF TAXES 4,208,325 2,390,805 58,825 150,000 1,917,305 Subtotal 8,725,260 5,839,095 Subtotal 5,839,095 738,900 651, 970 450,000 Subtotal 1,840,870 Subtotal 0 OF TAXES 189,275 189,275 165,000 1,036,365 0 903,055 50,000 2,154,420 210,000 0 46,000 256,000 1,856,835 560,000 327,540 65,000 575,000 170,385 3,800 3,558,560 1,052,795 80,285 170,000 236,545 37,020 15,520 69,080 51,105 927,010 13,000 12,000 4,600 6,000 435,025 38,075 TOTAL 4,208, 325 2,390, 805 189,275 58,825 150,000 1,917, 305 8,914,535 5,839,095 165,000 1,036,365 0 903,055 50,000 7,993,515 210,001 46,000 738,900 651,970 450,000 2,096,870 1,856,835 560,000 327,540 65,000 575,000 170,385 3,800 3,558,560 1,052,795 80,285 170,000 236,545 37,020 15,520 69,080 51,105 927,011 13,001 12,001 4,600 6,000 435,025 38,075 Subtotal 0 3,148, 060 3,148,060 EXHIBIT 1, Page 3 OTHER MISCELLANEOUS Bus Pass Sales Misc Sundry/Other Reimb Rental Income CRA and LILD Admin Reimb Subtotal REVENUE SUB TOTAL (For Worksheet #3) INTEREST EARNINGS (From Worksheet #3) TOTAL (Use For Worksheet #4) 0 2,000 90,000 42,540 24,300 158,840 PROCEEDS NON -PROCEEDS OF TAXES 16,405,225 221,117 16,626, 342 OF TAXES 9,465,155 129,863 9,595,018 2,000 90,000 42,540 24,300 158,840 TOTAL 25, 870, 380 350,980 26,221,360 EXHIBIT 1, Page 4 INTEREST EARNINGS PRODUCED BY TAXES Worksheet #2 Page 1 of 1 CITY: FY: TEMPLE CITY 2023-24 A. Non -Interest Tax Proceeds B. Minus Exclusions C. Net Invested Taxes D. Total Non -Interest E. Tax Proceeds as Percent of Budget F. Interest Earnings G. Amount of Interest Earned from Taxes H. Amount of Interest Earned from Non -Taxes AMOUNT SOURCE 16,405,225 0 16,405,225 25, 870, 380 63% 350,980 221,117 129,863 (Worksheet #2) GF Capital Project (A - 8) (Worksheet #2) (C I D) (Budget or Actual) (E*F) F -G) plus any CRA Int, Restricted CIP) EXHIBIT 1, Page 5 APPROPRIATIONS SUBJECT TO LIMITATION Worksheet #3 Page 1 of 1 CITY: FY: TEMPLE CITY 2023-24 A. Proceeds of Taxes B. Exclusions C. Appropriations subject to Limitation D. Current Year Limit E. Over/(Under) Limit CAPITAL PROJECTS General Fund (MOE) ARPA Funds SB1 Measure M Measure R Measure W ULD *PROJECTS UNDER $100,000 Amount Source 16,626,342 16,626,342 26,430, 230 (9,803,888) (Worksheet #2) GF Capital Project (A - B) (Worksheet #6) (C - D) PROCEEDS NON -PROCEEDS OF TAXES 210,000 2,321,535 1,781,005 858,585 5,171,125 0 OF TAXES 3,700,000 2,147,775 2,075,000 7,922,775 EXHIBIT 1, Page 6 APPROPRIATIONS LIMIT CALCULATION Worksheet #4 Page 1 of 1 City Population 2022-23: 1-1-22 36,010 1-1-23 35,813 A. LAST YEAR'S LIMIT B. ADJUSTMENT FACTORS: 1. Population % (greater of City or County factor) 2. Inflation % (from State Finance or Assessor) C. ANNUAL ADJUSTMENT Total Adjustment Factor Percent -0.55% Amount $25,445,490 0.9945 1.0444 1.0387 County Population 9,826,563 9,753,247 Source (Worksheet #5) (C1 " C2) D. OTHER ADJUSTMENTS: 984,740 (A * B) Lost Responsibility (-) Transfer to private (-) Transfer to fees (-) Assumed Responsibility (+) E. TOTAL ADJUSTMENTS 0 Sub -total 984,740 (C + 0) F. THIS YEAR'S LIMIT $26,430,230 (A + E) Percent -0.75%