CC 2015-06-09_08c FY 2014-15 Appropriation LimitTO:
FROM:
SUBJECT:
DATE:
MEMORANDUM
CITY COUNCIL
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE~
SERVICES vi·
CONSIDERATION OF FISCAL YEAR 2014-15 APPROPRIATION
LIMIT
JUNE 9, 2015
RECOMMENDATION:
It is recommended the City Council adopt the att~ched _Resolution establishing
the appropriation limit from tax proceeds for Fiscal Year 2015-16.
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 p~oceeds to determine compliance with Propositions 4 (Gann_ Initiative) and
111 (Spending Limitation Act of 1990). This calculation is based on the previous
year's ap'propriation limit ($18,605,951) multiplied by the per capita personal
income percentage increase (3.82%) and multiplied again by the population
percentage change (0.77%). 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 2015-16, the appropriation limit has been calculated to be
$19,465,437.
This calculation means that the City cannot receive more than $19,465,437 in
tax-based revenues in Fiscal Year 2015-16. The estimated tax-based revenues
for the Fiscal Year have been calculated to be $13,982,850, approximately $5.5
million less than the appropriation limit. Therefore; the City is in compliance with
Article XlllB of the California Constitution.
Item 8.c. - Page 1
CITY COUNCIL
CONSIDERATION OF FISCAL YEAR 2013-14 APPROPRIATION LIMIT
JUNE 9, 2015
PAGE2
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
-Adopt the Resolution establishing the appropriation limit for Fiscal Year
2015-16;
-Do not adopt th,e .Resolutio_n;
-Provide direction to staff.
ADVANTAGES:
By adopting the Resolution establishing the appropriation limit for Fiscal Year
2015-16, 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 4, 2015. The
Agenda and report were posted on the City's website on Friday, June. q, 2015.
No public comments were received. · ·
Item 8.c. - Page 2
RESOLUTION NO. ·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADOPTING A TAX~ PROCEEDS
EXPENDITURE APPROPRIATION LIMli FOR F-ISCAL
YEAR 2015-16
WHEREAS, Sections 7900 et seq. of the Government Code provide for the effective
and efficient implementation of Article XlllB of the California Constitution; and
WHEREAS, Government Code Sections 7901 through 7914 provide that each year, the
go~erning 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
Gran.de 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 2015-
16.
2. The appropriation limit for Fiscal Year 2015-16 is hereby set at nineteen million,
four hundred sixty-five thousand, and four hundred· thirty seven dollars
($19,465,437).
3. Documentation used in the determination of the tax proceeds expenditure
appropriation limit is atta.ched 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 ,2015.
Item 8.c. - Page 3
RESOLUTION NO.
PAGE2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
-ROBERT MCFALL, INTERIM CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 8.c. - Page 4
CITY OF ARROYO GRANDE
CALCULATION OF APPROPRIATION LIMIT FROM TAX PROCEEDS
FOR FISCAL YEAR 2015-16
Appropriation limit for 2014-15
Multiplied by the appropriation limit change factors:
Per Capita Personal Income Change: 3.82%
Conversion to ratio:
Population Change:
2014 17,295
2015 17,428
Change 133
Conversion to ratio: 133
17,428
APPROPRIATION LIMIT FOR FISCAL YEAR 2015-16
ESTIMATED 2015-16 PROCEEDS OF TAXES SUBJECT TO
APPROPRIATION LIMIT
Amount under/( over) limit
3.82% + 100
100
0.77%
.77 + 100
100
Exhibit A
$ 18,605,951
1.0382
1.00770
$ 19,465,437
$ 13,982,850
$ 5,482,587
Item 8.c. - Page 5
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Item 8.c. - Page 6