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CC 2016-06-14_09c FY 2016_17 Appropriation Limit TO: FRO SUB DAT REC It is the a IMPA Ther BAC Annu tax p 111 year’ incom perce popu fisca ANA The reven Fisca $20,5 This tax-b for th millio Artic CI OM: DE SE BJECT: CO LI E: JU COMMENDA recommen appropriatio ACT ON FI re are no fis CKGROUND ually, the C proceeds to (Spending ’s appropri me percen entage cha ulation chan l year. ALYSIS OF City is res nue and a al Year 2 572,263. calculation based reven he Fiscal Y on less than le XIIIB of t ITY COUNC EBBIE MA ERVICES ONSIDERA IMIT UNE 14, 20 ATION: ded the Ci on limit from NANCIAL A scal or pers D: ity is requir o determine Limitation A iation limit tage increa ange (0.30% nge and th ISSUES: ponsible fo applying the 2016-17, th n means th nues in Fis Year have b n the appro the Californ M CIL ALICOAT, D ATION OF 016 ity Council m tax procee AND PERS sonnel impa red to calcu e complianc Act of 1990 ($19,465,4 ase (5.37% %). The Sta e per capit or dividing c e formula he approp hat the City scal Year 2 been calcul opriation lim nia Constitu MEMORAN DIRECTOR FISCAL YE adopt the eds for Fisc SONNEL R acts. ulate the ex ce with Pro 0). This cal 437) multip %) and mu ate Departm ta personal citywide rev to the cum priation lim y cannot re 016-17. Th ated to be mit. Therefo ution. NDUM R OF ADMIN EAR 2016- attached R cal Year 20 RESOURCE xpenditure a opositions 4 lculation is plied by th ultiplied ag ment of Fin l income ch venues bet mulative ap mit has be eceive mor he estimate $14,445,1 ore, the Cit NISTRATIV 17 APPRO Resolution 016-17. ES: appropriatio 4 (Gann In based on t e per cap gain by the ance provid hange for t tween tax ppropriation een calcula re than $20 ed tax-base 14, approx ty is in com VE OPRIATION establishin on limit from nitiative) an the previou ita persona e populatio des both th the previou and non-ta n limit. Fo ated to b 0,572,263 i ed revenue imately $6. mpliance wit N ng m nd us al on he us ax or be in es .1 th Item 9.c. - Page 1 CITY COUNCIL CONSIDERATION OF FISCAL YEAR 2015-17 APPROPRIATION LIMIT JUNE 14, 2016 PAGE 2 ALTERNATIVES: The following alternatives are provided for City Council consideration: - Adopt the Resolution establishing the appropriation limit - Do not adopt the Resolution; - Provide direction to staff. ADVANTAGES: By adopting the Resolution establishing the appropriation limit for Fiscal Year 2016-17, 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 9, 2016. The Agenda and report were posted on the City’s website on Friday, June 10, 2016. No public comments were received. Item 9.c. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A TAX PROCEEDS EXPENDITURE APPROPRIATION LIMIT FOR FISCAL YEAR 2016-17 WHEREAS, Sections 7900 et seq. of the Government Code provide for the effective and efficient implementation of Article XIIIB 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 2016- 17. 2. The appropriation limit for Fiscal Year 2016-17 is hereby set at twenty million, five hundred seventy two thousand, and two hundred sixty three dollars ($20,572,263). 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 , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this ___ day of June, 2016. Item 9.c. - Page 3 RESOLUTION NO. PAGE 2 ______________________________ JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: DIANNE THOMPSON, CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 9.c. - Page 4 EXHIBIT A CITY OF ARROYO GRANDE CALCULATION OF APPROPRIATION LIMIT FROM TAX PROCEEDS FOR FISCAL YEAR 2016-17 Appropriation limit for 2015-16 $19,465,437 Multiplied by the appropriation limit change factors: Per Capita Personal Income Change:5.37% Conversion to ratio:5.37% + 100 =1.0537 100 Population Change: 2015 17,678 2016 17,731 0.30% Change 53 Conversion to ratio:53 .30% + 100 1.00300 == 17,731 100 APPROPRIATION LIMIT FOR FISCAL YEAR 2015-16 $20,572,263 ESTIMATED 2016-17 PROCEEDS OF TAXES SUBJECT TO APPROPRIATION LIMIT $14,445,114 Amount under/(over) limit 6,127,149$ Item 9.c. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.c. - Page 6