HomeMy WebLinkAboutAgenda Report - March 18, 1987 (44)70 THE CITY '(70UNCIL DATE
FRONA, THE CITY MANAGER'S OFFICE starch 18, 198:
S1;6!"7 1986-87 APPROPRIATION SPENDING LIMIT
RECOMMENDED ACTION: That the Lodi City Council set the 1986-87
Appropriation Spending Limit at $22,654,787.
BACKGROUND HISTORY: Article XIII B of the California State
Constitution specifies that an annual Appropriation Spending Limit
shall be established.
The Spending limit shall be adjusted each year by the changes in
population (+5.381) and Consumer Price Index (2.30%).
The revised 1985-86 Limit of $21,015,572, increased by population and
Consumer Price Index, yields a 1986-87 Spending Limit of $22,654,787.
($21,015,572) (1.0538) (1.0230) = $22,654,787
Robert H. Holm
Finance Director
RHH/ss
attachment
APPSPNDG/TXTF.06S
NO,
MEMORANDUM
TO: Thomas A. Peterson, City Manager
FROM: Robert H. Holm, Finance Director
DATE: March 5, 3987
SUBJECT: 1986-87 Appropriation Spending Limit
e have revised our original 1978-79 Proposition 4 Spendirg 1 Miit from
56,62?,521 to 510,531,611. In the original calculation of the base
year Spending Limit, we discovered the profits of the utility
Enterprise Funds were double posted to both the appropriations subject
to the Spending Limit and the Excess user Fee calculations. 'i.Psing this
new base, and, increasing it by the permitted growth in popt:lation and
Consumer Price Index, results in a 1986-87 Spending Limit Of
S22,654,787.
The City's current appropriation, subject to the Spending Limit as of
1/31/87, is $15,386,513. This is 68 of the City's revised Spending
Limit attained with the following calculations:
Population growth 5.38:
CPI increase 2.30
1.0538 x 1.0230 = 1.01180 Spending Limit increase in 1986-87
We can still raise the limit by a factor for all annexations since 1979
which is not included above. Article XII; 8 of the Constitution,
Section 3(a), states that when financial responsibility for providing
services is transferred (annexation), the limit of each agency shall be
increased/decreased a mutually agreed "reasonable amount." No further
guidelines are given. i_odi has grown from 7.9 square miles to 9.3
square miles (18%) since Proposition 4. At such time as it is
necessary to further increase the City's Spending Limit, these rather
complicated calculations can be undertaken.
Robert o m
s;
Finance Director
RHH/ss
Attachment
i
R SOL?TI'ION NG. 87-35
RESOLIPPIO: ADOPTING AN APPROPRIATICAFS SPENDING
LIMIT FOR 1986-87 IN COMPLT-A1NCE WIT11 PROPOSITION 4
ARTICLE XIII B OF TETE STATE CONSTITUTION
RESOLVED, that the City Council of the City of Lodi adopt the following
Appropriations Spending Limit for 1986-87 in ccmliance with
Proposition 4, Article XIII B of the State Constitution:
1986-87 Appropriations Spending Limit - $22,654,787
Dated: March 18, 1987
I hereby certify that Resolution No. 87-35 Eras passed r
a; -,d adopted by the City Council of the City of Lodi in
a regular meeting held March 18, 1987 by the following
vote: _
Ayes: Council Members - Olson, Hinchman, Pinkerton,
Snider, and Reid (Mayor)
Ids: Council Members - None
Absent: Council Members - None
Alice M. R he
City Clerk