HomeMy WebLinkAboutAgenda Report - September 15, 1993 (47)os
CITY OF LODI
,
COUNCIL COMMUNICATION
AGENDA TITLE: 1993-94 APPROP� IATION SPENDING LIMIT
MEETING DATE: September 15, 1993
PREPARED BY: Finance Director
RECOMMENDED ACTION: 1. That the City Council adopt the Appropriation Spending
Limit for FY 1993-94 of $35,697,755, and
2. Designate by Resolution the factors used in calculating the
Appropriation Spending Limit as: (1) the California Per
Capita Income growth factor of 2.7246; and, (2) the County
Population Growth factor of 2.13% published by the
Department of Finance, State of California on April 30,
1993.
BACKGROUND
The statutes regarding the adoption of the Appropriatiens Spending Limit are contained in Government
Code Section 7910 and require the City Council to annually adopt by Resolution an Appropriation
Spending Limit and to designate the factors used to calculate the Appropriation Spending Limit prior to
the beginning of the fiscal year.
This year, as last year, the City did not adopt the Appropriation Spending Limit prior to the beginning
of the Fiscal Year due to last minute changes in tax revenue distribution laws made by the State
Legislature.
The City is required to report the Appropriation Spending Limit in two official publications:
The annual budget published by the City, and
The Annual Statement of Financial Transactions published by the State Controller's Office.
CALCULATION OF THE APPROPRIATION LIMIT
The appropriation spending limit is calculated by selecting factors published by the State Controller's
Office and the County Auditor's Office. There are two adjustment factors from which to select. One
factor is for inflation from which the City may select either the California Per Capita Income growth
(2.72%) or the "increase in non-residential assessed valuation due to new construction" (not published
by the County) and the other factor is for population growth from which the City may select either City
population growth (.73%) or County population growth (2.13%).
f APPROVED
THOMAS A. PETERSON r,cyedoip,
City Manager
l J
CC -1
The factors selected in calculating the 1993-94 Appropriation Spending Limit were the California Per
Capita Income growth factor and the County population growth factor. These adjustment factors give
the City the greater increase in the Appropriation Spending Limit.
APPROPRIATIONS SUBJECT TO LIMIT
The appropriation subject to limit for Fiscal Year 1993-94 is $16,646,590 as shown on line C of Exhibit
C. This amount is the proceeds from taxes plus investment earnings less allowable exclusions for debt
service, qualified capital outlays, court orders and federal mandates. The exclusions are shown in Exhibit
D (Excluded Appropriations), Exhibit E (User Fees to Costs) and F (Cost of Services and Proceeds of
Taxes) and Exhibit G (Investment Earnings).
ANNUAL REVIEW AND ENFORCEMENT
Proposition 111 (Section 1.5 of Article XIIIB) also requires that the annual calculation of the limit be
reviewed as part of the annual financial audit which is now schedulexi to be completed prior to November
1993 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
"Price and Population Data for Local Jurisdictions" published by the Department of Finance dated April
30, 1993
RESOLUTION NO. 93-112
RESOLUTION ADOPTING THE APPROPRIATION LIMIT
AND ADJUSTMENT FACTORS SELECTED TO CALCULATE THE
LIMIT FOR FISCAL YEAR 1993-94
WHEREAS, the City Council of Lodi is required to adopt the Appropriation Spending Limit; and
WHEREAS, the City Council is required to designate the annual adjustment factors selected to
calculate the Appropriation Spending Limit, and
WHEREAS, the City has selected the California Per Capita Income growth rate and the San
Joaquin County Population Growth rate published by the California Department of Finance, and
WHEREAS, the Appropriation Spending Limit was not adopted prior to the beginning of the
Fiscal Year due to the uncertainty of tax revenues due to changes in State tax distribution laws by the
State Legislature in June 1993, and
WHEREAS, the changes in the State tax laws have significantly impacted the calculation of the
Appropriation subject to limit.
NOW, THEREFORE the City Council of the City of Lodi adopts the Appropriation Limit for
Fiscal Year 1993-94 of $35,697,755 and designates the adjustment factors for calculation of the
Appropriation Spending Limit as: (1) the California Per Capita Income growth factor of 2.72 %; and,
(2) the San Joaquin County Population f:-.,wth factor of 2.13 %.
Dated: September 15, 1993
I do hereby certify that Resolution No. was passed and adopted by the City council of
the City of Lodi in a regular meeting held September 15, 1993 by the following vote:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
Jennifer Perrin
a --
City Clerk
Dated: September 15, 1993
I do hereby certify that Resolution No. was passed and adopted by the City council of
the City of Lodi in a regular meeting held September 15, 1993 by the following vote:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
Jennifer Penin
City Clerk
A. Last Year's Limit
Fes!
EXHIBIT A
City of,Lodi
Appropriations Spending Limit
FY 1993-94
Amount Source
34,027,028
B. Adjustments Factors
1. Population %1.0213 (Exhibit B)
2. Inflation % 1.0272 (State Finance)
Total Adjustment % L 1.(B1'B2)
C. Annual Adjustment
D. Other Adjustments
E. Total Adjustments
F. This Year's Limit
[-- 1,670,727 (BOA)
C None_
1,670,727 (C+D)
35,697,755 (A+E)
Ma
City of Lodi
EXHIBIT B
Appropriations Spending
Limit
Growth Factors/Calculations
GROWTH FACTORS:
%locreasc
Fiscal
Per Capita
City
_
County
Year
Income
Population
Population
87-88
3.47
5.72
3.33
88-89
4.66
4.96
332
89-90
5.19
2.52
2.20
90-91
4.21
2.26
2.23
91-92
4.14
1.19
2.64
92-93
-0.64
0.97
2.41
93-94
2.72
0.73
2.13
CALCULATIONS:
Fiscal.
Appropriation
Year
Calculation
Spending Limit
87-88
1.0347 x 1.0572 = 1.0939
1.0939 x $22,654,787
$24,782,072
88-89
1.0466x1.0496=1.0985
1.0985 x $24,782,072
=
$27,223,106
89-90
1.0519 x 1.0252 = 1.0784
1.0784 x $27,223,106
=
529,357,398
90-91
1.0421 x 1.0226 =1.0657
1.0657 z $29,357,398
=
$31,286,179
91-92
1.0414 x 1.0264 =1.0689
1.0689 x $31,286,179
=
$33,441,797
92-93
.9936 x 1.0241 =1.0175
1.0175 x 33,441,797
=
$34,027,028
93-94
1.0272 x 1.0213 = 1.0491
1.0491: 34,027,028
=
$35,697,755
EXHIBIT C
APPROPRIATIONS SUBJECT TO LIMITATION
City of Lodi
Fiscal Year 93-94
AMOUNT SOURCI3
A. PROCEEDS OF TAXES 16,826,990 (Exhibit F)
B. EXCLUSIONS �— 180t400 (Exhibit D)
C. APPROPRIATIONS SUBJECT TO LIMITATION ( 16,646,590 (A—B)
D. CURRENT YEAR LIMIT 35,697,7551 (Exhibit A)
I? OVER(UNDER) LIMIT
16,646,590
35,697,755
4
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(19,051,165
46.63%
(C— D)
EXCLUDED APPROPRIATIONS
City of Lodi
FY93— 94
EXHIBIT D
CATEGORY Amount
COURT ORDERS
Subtotal None
FEDERAL MANDATES
Subtotal None
QUALIFIED CAPITAL OUTLAYS
Subtotal None
QUALIFIED DEBT SERVICE 180P400
Subtotal 180,400
TOTAL EXCLUDABLE F— 180,400
'(Copy to Exhibit C & G)
City of Lodi EXIIIBTT E
Schedule to Match User Fees to Costs
For the Fiscal Year 1993-94
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o.
User Fee Revenue
User Fee
Revenue
Costs Associated
Excess of User Fees
Denartmeet/Division
Collections
to Cost
With User Fees
Over Costs
Planning
50,000
4%
1,2501000
0
Engineering
163,900
35%
468286
0
Building Inspection
178,700
.93%
192,151
0
Police
90.900
34%
267,353
0
Parting Meter
93,200
74%
125,946
0
Customer Services
299.100
95%
201,900
0
Animal Shelter
11,900
56%
21,250
0
Community Center
103,800
46%
225,652
0
Parts & Rccmtions
390,300
68%
573,971
0
Waste Removal fees
5,42.6,400
5.490,500
0
Library fees
47,PW
1,008,770
0
Contributions:
Water Fund
750,000
750,000
Sewer Fund
385.000
385.000
Electric Fund
3,218,690
3,218,690
Total
11208,890
9,825.778
4,353,690
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Calculation of Proceeds of Talcs
City of Lodi
FY 93-94
EXHIBIT P
PROCEEDS NON -PROCEEDS
REVENUE OPTAXES OPTAXES TOTAL
TAXES_
Property Taxes
Sales do Use Tax
Business License Tax- Revenue
Franchise Fen
Transient Otxnpattcy Tax
Real Property -Documentary
Cwher Taxes
FROM STATE
Motor Vehicle Is Lieu
State H -way Maintesaure
Gas Tax
Cigarette tax
Library Sen Act State Grant
Transportation Development Act
TDA-PedestriWilike Path
SB 310 Transportation Partnership
Measure K Funds
State Reimburse seats -POST
Public Library Foundation
SB90 Reimbursements
Anel Seizure Funds
LOCALLY RAISED
Flues, Forfeitures, Penalties
Development Fen
USER PEES
(from Exhibit E)
OTHER MISCELLANEOUS
Sale of Property
County Recreation Allotment
County CRACNET
LUSDDrug Suppression Grant
Restitution -Damage to Properly
Intermed Transfers
SUB -TOTAL
(for Exhibit G)
INTEREST EARNINGS
(from Exhibit G)
TOTAL REVENUE
(use for Fxhibil C)
RESERVE WITHDRAWALS
(Including appropriated Fund Balance)
TOTAL OF THESE. PUNDS
OTHER FUNDS NOT INCLUDED
GRAND TOTAL BUDGET
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1371.800 ---- 190 400
- ---- ---- 5.180.000
5.180,000
91000 --
-' --
-- 94,000
$35,600
535,600
- 247,300
247,300
-
_ 56AM
56,000
0
0
-_ 1.795,600
----
1,785.600
5,100
5,100
923,400
923,400
33,000
33 000
_
653,970
653,970
20,200
20200
_ 1S1,300
_
151,300
461,500
161
66,000
66,000
13,1)00
13,000
ES,000
85,0W
53,600
53,600
135,100 1 135,100
2'$10,2001 2,310;200
4,353,690 6,a35_1W I 11,203,390
--_ _ -- 20,000 20,000
0 0
7$,000 78,000
65,500 65,500
L- 10,000 V 10,000
1,663,175 1,663,173
16,!26,990 14,945 31,112,935
-131,459 111 ?tl 245,700
S16,95111,449 S14,100.186 531 358,635
-r_S31.251,975
--- - - 63,8_ 87 3
cio
City of Lodi
Fiscal Year 93-94
Interest Earnings
Produced by Taxes
EXHIBIT G
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AMOUNT
SOURCE
_
A. NON-INTEREST TAX PROCEEDS16,826,990
(Exhibit F)
B. MINUS EXCLUSIONS
r— 180,40tI�
(Exhibit D)
C. NET INVESTED TAXES
16,646,S90
(A—B)
D. TOTAL NON—INTEREST BUDGET
31,112,935
(Exhibit F)
E. TAX PROCEEDS AS PERCENT
OF BUDGET
F_ 53.5096
(CID)
F. INTEREST EARNINGS
245.700
G. AMOUNT OF INTEREST EARNED
131,4S91
(E -F)
FROM TAXES
Il. AMOUNT OF INTEREST EARNED
ON NON—TAXES
114,241
(F—G)
I. Tate the result of steps ARG & 11
Copy on to Exhibit F
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STATF, OF CALIFORNIA PETE WILSON. GOWA-11
DEPARTMENT OF FINANCE
915 L STREET
SACRAMENTO, CA 9581:-499e S
April 30, 1993
PRICE AND POPULATION DATA FOR LOCAL JURISDICTIONS
Appropriations Limit
Article XIII 8 of the California Constitution specifies that appropriations made
by State and local governments may increase annually by a factor comprised of the
change in population combined with either the chanoe in California per capita
personal income or the change in the local assessment roll due to local
nonresidential construction.
The Department of Finance is mandated to provide the population and California
per capita personal income change 'ata for local jurisdictions to calculate their
appropriation limits. The chany�. ;n the local assessment roll due to local
nonresidential construction may be obtained from your county Assessor. The
enclosures contain price and population factors for setting your 1993-94
appropriation limit.
Enclosure I provides the change in California's per capita personal income price
factor. An example of how to utilize this price factor and the population
percentage change factor in calculating your 1993-94 limit is included.
Loclosure lI provides the population percentage change factors for cities and
counties.
Enclosure IIA provides the population percentage change factor for counties and
for the total incorporated population of each county.
These population percentage changes were prepared pursuant to Sections 2227 and
2228 of the Revenue and Taxation Code and are calculated as of January 1, 1993.
Section 2227 specifies that state mental institutions, federal military bases and
state and federal prisons be excluded from the percentage change calculations.
Population Factors for Cities and Counties
Cities and counties should consult Section 7901 of the Government Code for the
various population factors that may be used for purposes of change in population.
Population Factors for Special Districts
Special districts should consult Section 7901 of the Government Code and Section
2228 of the Revenue and Taxation Code for the various population factory that may
be used for purposes of change in population.
Enclosure I
A. Price Factor: Article XIII B specifies that local jurisdictions
select their cost -of -living factor to compute their appropriation
limit by a vote of their governing body. Local jurisdictions may
select either the percentage change in California per capita
personal income or the percentage change in the local assessment
roll due to the addition of local nonresidential new construction.
If the percentage change in per capita personal income is selected,
the percentage changes to be used in setting 1993-94 appropriation
limit are:
Per Capita Personal Income
Fiscal Percentage change
Year (FY) over prior year
1993-94 2.72
B. Following is an example using sample population changes and the
changes in California per capita personal income as growth factors
in computing a 1993-94 appropriations limit.*
1993-94:
Per Capita Change = 2.72 percent
Population Change = 1.85 percent
Per Capita converted to a ratio: 2.72 + 100 = 1.0272
100
Population converted to a ratio: 1.85 + 100 - 1.0185
100
Calculation of factor for FY 93-94: 1.0272 x 1.0185 = 1.0462
* Conversion of the factor to a ratio eliminates minus numbers.
ANNUAL PERCENTAGE CHANGE IN POPULATION MINUS EXCLUSIONS* JANUARY 1. 1992
TO JANUARY 1, 1993 AND TOTAL POPULATION JANUARY 1. 1993•
COUNTY
CITY
POPULATION MINUS EXCLUSIONS
POPULATION
ANNUAL
PERCENT CHANGE
1992 TO 1993 1-1-92 1-1-93
ENCLOSURE 11
DATE PRINTED
04/26/93
TOTAL
POPULATION
1-1-93
SAN JOAQUIN
ESCALON
1.20
4,920
4.979
4.979
LATHROP
5.61
7,026
7,420
7.453
LODI
0.73
53.310
53.701
53.701
MANTECA
2.89
42,248
43,469
43,469
RIPON
2.09
8,221
8,393
8.393
STOCKTON
1.81
220,795
224,781
226,255
TRACY
6.69
37.966
40,507
40,507
UNINCORPORATED
1.48
122.415
124,231
129,748
SAN JOAQUIN COUNTY
2.13
496,901
507,481
514,505
EXCLUSIONS INCLUDE STATE MENTAL INSTITUTIONS, FEDERAL MILITARY BASES AND STATE
AND FEDERAL PRISONS.
PAGE I
RESOLUTION NO. 93-112
RESOLUTION ADOPTING THE APPROPRIATION LIMIT
AND ADJUSTMENT FACTORS SELECTED TO CALCULATE THE
LIMIT FOR FISCAL YEAR 1993-94
WHEREAS, the City Council of Lodi is required to adopt the Appropriation Spending Limit; and
WHEREAS, the City Council is required to designate the annual adjustment factors selected to
calculate the Appropriation Spending Limit, and
WHEREAS, the City has selected the California Per Capita Income growth rate and the San
Joaquin County Population Growth rate published by the California Department of Finance, and
WHEREAS, the Appropriation Spending Limit was not adopted prior to the beginning of the
Fiscal Year, due to the uncertainty of tax revenues due to changes in State tax distribution laws by the
State Legislature in June 1993, and
WHEREAS, the changes in the State tax laws have significantly impacted the calculation of the
Appropriation subject to limit.
NOW, THEREFORE the City Council of the City of Lodi adopts the Appropriation Limit for
Fiscal Year 1993-94 of $35,697,75 and designates the adjustment factors for calculation of the
Appropriation Spending Limit as: (1) the California Per Capita Income growth factor of 2.72 %; and,
(2) the San Joaquin County Population growth factor of 2.13 %.
Dated: September 15, 1993
I do hereby certify that Resolution No. 93-112 was passed and adopted by the City council of
the City of Lodi in a regular meeting held September 15, 1993 by the following vote:
AYES: Council Members - Davenport, Mann, Sieglock, Snider, and
Pennino (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
i `%�1`t'� tic�
n11 er L rri-1
n
ity Clerk