HomeMy WebLinkAboutAgenda Report - October 7, 1992 (62)00
OCITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE 1992-93 APPROPRIATION SPENDING LIM
NEETING DATE October 7,1992
PREPARED BY: Finance Director
RECOD24ENDED ACTION: That the City Council adopt the Appropriations Spending Limit for
FY 1992-93 of $34,027,028 with the factors used to make the
calculation.
BACKGROUND
The statutes regarding the adoption of the Appropriations Limit are contained in Government Code
Section 7910. Basically the law calls for the adoption of the Limit by resolution prior to the beginning
of the fiscal year. However, this requirement also assumes that the State has an adopted budget in
accordance with the State Constitution in which the City's revenues subject to limit are available. Also,
Proposition 111 now requires a recorded vote of the Council designating the annual adjustment factors
selected tD calculate the Limit.
Adoption cf the Limit is required to be done at a regular meeting of the Council. There is no required
hearing or public notice. The documentation used to compute the Limit must be available to the public
at least 15 days prior to the meeting, but only the meeting itself needs to be publicly noticed.
Once the Limit is adopted, the public has 45 days from the effective date of the resolution to initiate
judicial action regarding the Limit. Once the Appropriations Limit has been adopted, there are two
publication requirements:
Pursuant to Government Code Section 37200 the Appropriation Limit and the total
* Appropriation Subject to Limitation must be published in the annual budget.
The State Controller's Office requires the submission of an informational form along with
the filing of the Annual Statement of Financial Transactions no later than 90 days after the
start of each fiscal year.
APPROPRIATION I=
Calculation of the appropriation limit is relatively easy to compute. The calculation is based on an either
the growth of California Per Capita Income (.9936) or the increase in non-residential assessed value due
ID new construction (published by the County) and City population growth (1.0241) or County population
growth. The "annual adjustment factors", inflation and the population increase are multiplied to
determine a final percentage (I.0175) which is than multiplied by the prior years' Limit. This calculation
is provided on Exhibit A with the calculations used in the last six (6) years (Exhibit B).
1
APPROVED
THOMAS A PETERSON recycled paper
City Manager
CC I
The City selected the Cal i fo rn i a Per Capita Income and the City population growth to calculate the
Appropriation Limit. With these factors, the appropriation subject to the Limit of $17,255,606 is
significantly less than the Appropriation Limit of $34,027,028. This allows the City a 50% available
margin before the Appropriation Limit is exceeded.
APPROPRIATIONS SUBJECT TO LDffT
The appropriation subject to limit for Fiscal Yew 1992-93 is $17,255,606 as shown on line C of Exhibit
C. This limit represents the proceeds fran taxes plus investment earnings less allowable exclusions
which includes debt service, qualified capital outlays, court orders and federal mandates. The calculation
for exclusions is shovm in Exhibit D (Excluded Appropriations), Exhibit E and F (Cost of Services and
Prods of Tmw) and Exhibit G (Investment Earnings).
ANNUAL lWrM4 AND ENFORCEMENT
Proposition 111 (Section 15 of Article XIIIB) requires that the annual calculation of the limit be reviewed
as part of the annual financial audit which is now scheduled to be completed prior to November 1992 by
the City's auditors, KPMG Peat Marwick.
Attachments
Resolution Adopting the Annual Appropriation Limit and Appropriation Subject to Limit
Exhibits A through G - Calculation of Appropriation Limit and Appropriations Subject to Limit
RESOLUTION NO. 92- 169
RESOLUTION ADOPTING THE APPROPRIATION LIMIT
AM) ADJUSTMENT FACTORS SELECTED TO CALCULATE TI I E
LIMIT FOR FISCAL YEAR 1992-93
WHEREAS, the City Council of Lodi is required to adopt the Appropriation Limit; and
WHEREAS, the City Council is required to approve the annual adjustment factors selected to
calculate the Appropriation Limit by recorded vote, and
WHEREAS, the City has sWecW the California Per Capita Income rate published by the
California Department of Finance and the City of Lodi Population Growth as published by the California
Department of Finance, and
WIIEREAS, the Appropaation Limit was not adopted prior to the beginning of the Fiscal Year
uue to the State Budget crises which delayed adoption of the State Budget for 64 days after the beginning
of the Fiscal Year, and
WIIEREAS, the changes in the State Budget could have significantly impacted the calculation o t
the Appropriation Limit.
NOW , THEREFORE the City Council of the City of Lod i adopts the Appropriation Limit for
Fiscal Year 1992-93 of $34,027,028 and the inflation factor of .9936 and population growth factor of
1.0175 used to calculate the Limit.
Dated: October 7.1992
I do hereby certify that Resolution No. 92- 169 was passed and adopted by the City council of
the City of Lodi in a regilar meeting held October 7, 1992 by the following vote:
AYES: Council Members - Hinchrnan, Pennino, Sieglock, Snider
and Pinkerton (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
Alice M. Reimche
City Clerk
92-169
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