CC 2013-06-11_08.b. FY 2013-14 Appropriation LimitDATE: IT, reliww��I
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FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE
SERVICES
SUBJECT: CONSIDERATION OF FISCAL YEAR 2013-14 APPROPRIATIOI`%
LIMIT
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution establishing
the appropriation limit from tax proceeds for Fiscal Year 2013 -14.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no fiscal or personnel impacts.
BACKGROUND:
Annually, the City is required to calculate the expenditure appropriation limit from
tax proceeds to determine compliance with Propositions 4 (Gann Initiative) and
111 (Spending Limitation Act of 1990). This calculation is based on the previous
year's appropriation limit ($17,717,995) multiplied by the per capita personal
income percentage increase (5.12 %) and multiplied again by the population
percentage change (0.60 %). The State Department of Finance provides both the
population change and the per capita personal income change for the previous
fiscal year.
ANALYSIS OF ISSUES:
The City is responsible for dividing citywide revenues between tax and non -tax
revenue and applying the formula to the cumulative appropriation limit. For
Fiscal Year 2013 -14, the appropriation limit has been calculated to be
$18,736,907.
This calculation means that the City cannot receive more than $18,736,907 in
tax -based revenues in Fiscal Year 2013 -14. The estimated tax -based revenues
for Fiscal Year 2013 -14 have been calculated to be $12,213,612, approximately
$6.5 million less than the appropriation limit. Therefore, the City is in compliance
with Article XIIIB of the California Constitution.
Item 8.b. - Page 1
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2013-14 APPROPRIATION LIMIT
JUNE 11, 2013
PAGE
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
- Adopt the Resolution to establish the appropriation limit for Fiscal Year
2013 -14;
- Do not adopt the Resolution;
- Provide direction to staff.
ADVANTAGES:
By adopting the Resolution to establish the appropriation limit for Fiscal Year
2013 -14, the City will be in compliance with Propositions 4 and 111.
DISADVANTAGES:
There is no disadvantage identified in relation to this recommendation.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, June 6, 2013. The
Agenda and report were posted on the City's website on Friday, June 7, 2013.
No public comments were received.
Attachment:
1. Categorization of Estimated Revenue
Item 8.b. - Page 2
RESOLUTION OF COUNCIL OF
OF ARROYO GRANDE ADOPTING A TAX PROCEEDS
EXPENDITURE APPROPRIATION LIMIT FOR FISCAL
YEAR
WHEREAS, Sections 7900 et seq. of the Government Code provide for the effective
and efficient implementation of Article X11113 of the California Constitution; and
WHEREAS, Government Code Sections 7901 through 7914 provide that each year, the
governing body of each local jurisdiction shall, by resolution adopted at a regularly
scheduled meeting, establish the annual adjustment factors to be used and the tax
proceeds expenditure appropriation limit.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Arroyo
Grande as follows:
1. The California per capita income and the population of San Luis Obispo County,
California are recognized as the annual adjustment factors for Fiscal Year 2013-
14.
2. The appropriation limit for Fiscal Year 2013 -14 is hereby set at eighteen million,
seven hundred thirty -six thousand, and nine hundred seven dollars
($18,736,907).
3. Documentation used in the determination of the tax proceeds expenditure
appropriation limit is attached hereto as Exhibit A and incorporated herein by this
reference.
4. This Resolution is effective on its date of adoption.
On motion of Council Member
, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this
, seconded by Council Member
day of 12013.
Item 8.b. - Page 3
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UVRAM
KELLY WETMORE, CITY CLERK
. - -_� •
Folflff AM
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.b. - Page 4
CITY OF ARROYO GRANDE
CALCULATION OF APPROPRIATION LIMIT FROM TAX PROCEEDS
FOR FISCAL YEAR 2013 -14
Appropriation limit for 2012 -13
Multiplied by the appropriation limit change factors:
Per Capita Personal Income Change:
Conversion to ratio:
Population Change:
2012
2013
Change
Conversion to ratio:
5.12%
$ 17,717,995
5.12% +100
1.0512
100
17,292
17,395 0.6%
103
103 .60+100 1.00600
17,395
APPROPRIATION LIMIT FOR FISCAL YEAR 2013 -14
ESTIMATED 2013 -14 PROCEEDS OF TAXES SUBJECT TO
APPROPRIATION LIMIT
11
$ 18,736,907
$ 12,213,612
Item 8.b. - Page 5
Attachment 1
CITY OF ARROYO GRANDE
CATEGORIZATION OF ESTIMATED REVENUE
Licenses and Permits
Building Dept. Permits 150,400
Other Licenses and Permits 87,250
Fines
M.V. Code Fines 50,000
Local Ordinance/Parking 22,000
Use of Property
Rent 303,520
NSF Fees /Cr.Bur.Coll. 200
Aid From Other Gov't Agencies
Proceeds Non Proceeds
Revenue Sources
From Taxes From Taxes
Taxes
36,000
Property Tax
3,459,000
Sales Tax
4,325,100
Sales Tax - Safety
110,000
Sales Tax - triple flip
787,000
Transient Occupancy Tax
760,000
Property Tax in lieu of VLF - triple flip
1,214,500
Business License Tax
80,000
Other Taxes
634,000
Licenses and Permits
Building Dept. Permits 150,400
Other Licenses and Permits 87,250
Fines
M.V. Code Fines 50,000
Local Ordinance/Parking 22,000
Use of Property
Rent 303,520
NSF Fees /Cr.Bur.Coll. 200
Aid From Other Gov't Agencies
M.V. License Fees
151,100
Homeowners Prop.Tax Relief 34,000
36,000
P.O.S.T. Reimb.
9,000
Mandated Cost Recovery
5,000
P.D.Officer Grant/Sharing
56,000
Other Grants
183,033
Gas Tax 451,805
86,500
Streets Revenues 431,360
57,010
Charges For Current Services
Community Development Fees
151,100
Public Works Charges for Services
36,000
Safety Impact Fees
74,000
Recreation Program Fees
548,150
Public Access Fees
35,000
Sewer Utility Billings
1,030,000
Park Development Fees
86,500
District Assessments
57,010
Traffic Signal Assessment
30,000
Transportation Facility Impact
50,000
Water Neutralization Impact Fees
35,000
Other Current Services
16,600
Item 8.b. - Page 6
Attachment 1
CITY OF ARROYO GRANDE
CATEGORIZATION OF ESTIMATED REVENUE
Proceeds
Non Proceeds
Revenue Sources From Taxes
From Taxes
Charges For Current Services
20,000
Sewer Facility Charges
20,000
Hydrant Water
2,000
Water Utility Billings
4,047,100
Meter Installations
5,000
Water Avail.Charges
25,000
Lopez Utility Billings
2,065,500
Water Distrib/Main Charges
20,000
Assessments- Parking District
8,500
Other Revenue
Sales of Property
580,000
Expenditure Recovery
72,500
Miscellaneous
20,000
Other Revenue
6,000
Total Revenue, Not Including Interest 12,176,765
9,997,363
Interest Percentage 54.91%
45.09%
Interest % Applied 36,847
30,253
Total Revenue, Including Interest
12,213,612
Grand Total Budget City Revenue 22,241,228
10,027,616
Item 8.b. - Page 7
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Item 8.b. - Page 8