HomeMy Public PortalAboutResolution 03-41891
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RESOLUTION NO. 03-4189
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY CONFIRMING THE FACTORS USED FOR CALCULATING THE
ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2003 -2004
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 decision as to which of the factors: a) either the California Per Capita Income or the
percentage change in the local assessment roll from the preceding year due to the addition of local non-
residential construction in the city; b) either the city's own population growth or the entire county; must be
done by a recorded vote of the City Council; and
WHEREAS, the City of Temple City has complied with all the provisions of Article XIIIB in
determining the Appropriations Limit for Fiscal Year 2003 -2004.
NOW, THEREFORE, the City Council of the City of Temple City does resolve, determine and order
as follows:
SECTION 1. The adjustment factors (the California Per Capita Income and the population growth of
the County) are to be applied to the 2002 -03 Limit.
SECTION 2. The accumulated growth in the calculation of these new factors are to be applied to the
Appropriations Limit in Fiscal Year 2003 -2004.
SECTION 3. The Appropriations Limit for Fiscal Year 2003 -2004 shall be $11,806,114 for the City of
Temple City as determined by Exhibit B, attached hereto.
SECTION 4. The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED on this 17th day of June, 2003
ATTEST:
r)r) t AJ-(1 e&--/ILU-Ck
City Clerk
MAY R
Resolution No. 03 -4189
Page 2
I hereby certify that the foregoing resolution, Resolution No. 03 -4189 was duly adopted by the City
Council of the City of Temple City at a regular meeting held on the 17th day of June, 2003 by the following
vote:
AYES: Councilmember - Arrighi, Wong, Zovak
NOES: Councilmember -None
ABSENT: Councilmember- Capra, Vizcarra
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EXHIBIT B
Page 1 of 5
ARTICLE XIII -B OF THE CALIFORNIA CONSTITUTION (GANN INITIATIVE)
Effective July 1, 1980, Proposition 4 (Gann) put a limit on the City's expenditures from tax revenues
based on 1978 -79 appropriations that is adjusted each succeeding year by 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 their 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 2003 -2004 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
2003 -2004 APPROPRIATIONS LIMIT
2002 -03 limit (1) $11,350,941
Per Capita Income and County population change
factor applied to 2002 -03 appropriations limit 1.0401
2003 -2004 appropriations limit $11,806,114
APPROPRIATIONS SUBJECT TO LIMIT AND APPROPRIATIONS MARGIN
Proceeds of Taxes $6,378,395
Less Exclusions:
Qualified Capital Outlay 1,191,062
Appropriations Subject to Limit $5,187,333
Appropriations Margin $6,618,781
(1) Recalcuted as a result of Proposition 111 and in accordance with guidelines of the League of
California Cities. Formal adoption for the FY 1991 -92 recalculated appropriations limit was approved
by the City Council on July 2, 1991.
EXHIBIT B
Page 2 of 5
Schedule of Calculations of Appropriations Limit
for Fiscal Year 2003 -04
a) Revised Appropriation Limit Calculation
Increase Annual Base
City or County In California Adjustment Appropriations
Fiscal Year Population Growth Per Capita Income Factor Limit
1986 -87 $5,097,811
1987 -88 101.91% County 103.47% 105.45% 5,097,811
x 1.0545
5,375,642
1988 -89 101.62% County 104.66% 106.36% 5,375,642
x 1.0636
5,717,533
1989 -90 101.14% County 105.19% 106.39% 5,717,533
x 1.0639
6,082,883
1990 -91 101.36% County 104.21% 105.63% 6,082,883
x 1.0563
6,425,349
1991 -92 101.73% County 104.14% 105.94% 6,425,349
x 1.0594
6,807,015
1992 -93 101.49% County 99.36% 100.84% 6,807,015
x 1.0084
6,864,194
1993 -94 101.42% City 102.72% 104.18% 6,864,194
x 1.0418
7,151,117
1994 -95 100.79% City 100.71% 101.51% 7,151,117
x 1.0151
7,259,099
1995 -96 101.22% City 104.72% 106.00% 7,259,099
x 1.0600
7,694,645
1996 -97 100.63% City 104.67% 105.33% 7,694,645
x 1.0533
8,104,770
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Schedule of Calculations of Appropriations Limit
for Fiscal Year 2003 -04
(Can't)
a) Revised Appropriation Limit Calculation
Fiscal Year
1997 -98
1998 -99
1999 -00
2000 -01
2001 -02
2002 -03
2003 -04
City or County
Population Growth
101.30% City
101.39% County
101.78% County
101.75% County
101.66% County
101.77% County
101.66% County
Increase
In California
Per Capita Income
104.67%
104.15%
104.53%
104.91 %
107.82%
98.73%
102.31%
Annual
Adjustment
Factor
106.03%
105.60%
106.39%
106.75%
109.61%
100.48%
104.01 %
EXHIBIT B
Page 3 of 5
Base
Appropriations
Limit
8,104,770
x 1.0603
8,593,488
8,593,488
x 1.0560
9,074,723
9,074,723
x 1.0639
9,654,598
9,654,598
x 1.0675
10,306,283
10,306,283
x 1.0961
11,296,717
11,296,717
x 1.0048
11,350,941
11,350,941
x 1.0401
11,806,114
EXHIBIT B
Page 4 of 5
Schedule of Calculations of Appropriations Limit
for Fiscal Year 2003 -04
(Con't)
b) Past Appropriation Limit Calculation
City Increase Annual Base
Population In Consumer Adjustment Appropriations
Fiscal Year Growth Price Index Factor Limit
1986 -87 - $5,097,811
1987 -88 101.72% 103.04% 104.80% 5,097,811
x 1.0480
5,342,506
1988 -89 100.55% 103.93% 104.50% 5,342,506
x 1.0450
5,582,919
1989 -90 99.19% 104.98% 104.13% 5,582,919
x 1.0413
5,813,493
1990 -91 100.45% 104.21% (1) 104.68% 5,813,493
x 1.0468
6,085,565
(1) The increase in California Per Capita Income was used instead of the Consumer
Price Index
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POPULATION GROWTH
Fiscal Year City County
1987 -88 101.72% 101.91%
1988 -89 100.55% 101.62%
1989 -90 99.19% 101.14%
1990 -91 100.45% 101.36%
1991 -92 100.93% 101.73%
1992 -93 100.93% 101.49%
1993 -94 101.42% 100.96%
1994 -95 100.79% 100.75%
1995 -96 101.22% 100.33%
1996 -97 100.63% 100.48%
1997 -98 101.30% 101.24%
1998 -99 101.37% 101.39%
1999 -00 101.62% 101.78%
2000 -01 101.53% 101.75%
2001 -02 101.33% 101.66%
2002 -03 101.69% 101.77%
2003 -04 101.17% 101.66%
EXHIBIT B
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