HomeMy WebLinkAbout7/25/2007 - STAFF REPORTS - 2.N. �o QPLMSp�
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Cq`IF ,P CITY COUNCIL STAFF REPORT
DATE: July 25, 2007 Consent Calendar
SUBJECT: ADOPTION OF APPROPRIATION'S LIMIT FOR FISCAL YEAR 2007/08
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
The City Council is required to annually adopt an appropriations limit for the new fiscal year.
Article XIIIB of the California Constitution requires government units to establish an annual
appropriations limit. This is done by using 1978-79 as a base year and allowing the base to
increase in future years by the percentage of growth in population of the City, whichever is
greater, and by the increase in California Per Capita Personal Income.
RECOMMENDATION:
Adopt Resolution No. of the City Council of the City of Palm Springs,
California, Adopting an Appropriations Limit for the Fiscal Year Ending June 30,
2008_
STAFF ANALYSIS:
The State of California in Article XIIIB of the California Constitution requires government units to
establish an annual appropriations limit. This is done by establishing 1978-79 as a base year
and allowing the base to increase in future years by the percentage of growth in population of
the City or County, whichever is greater, and by the increase in California Per Capita Personal
Income.
Guidelines and statistical data for calculation of the appropriation limit are provided by the
League of California Cities and the Department of Finance of the State of California.
The City's Finance Department has calculated the City's fiscal 1978-79 base year appropriation
limit to be $13,429,805. Using information supplied by the State Department of Finance, the
fiscal year 2007-08 appropriation limit is calculated to be $111,471,355.
ITEM NO.
City Council Staff Report
July 25, 2007— Page 2
Adopt Appropriations Limit for Fiscal Year 2007/08
It is important to point out those only specific revenues and appropriations are subject to
limitation. All of the City's enterprise and intra-governmental service funds are exempt. In
addition, Federal funds are exempt.
The appropriation amount subject to the limit was calculated to be $64,711,851 which is
$46,759,504 less than the 2007-08 appropriation limit.
The summary calculation to determine the limitation is attached to this report. However the total
calculations are very detailed and are not provided with this report, but are available for review
at the office of the City Clerk or at the Department of Finance_ The formula for calculations to
determine the new appropriation's limit is established by the State Department of Finance.
FISCAL IMPACT:
None
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Craig . Graves,birector of Finance and Troy . Butzlaff s tant City Manager-
Tr surer Admi strative lSeVi es
David H. Ready, ! er
Attachments: Worksheets
Resolution
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RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT
FOR THE FISCAL YEAR ENDING JUNE 30, 2008.
WHEREAS Article XIIIB of the Constitution of the State of California mandates an
appropriation and expenditure limit on various units of government, including the City of
Palm Springs; and
WHEREAS that limit has been calculated by the Finance Department of the City of
Palm Springs using current guidelines provided by the State Department of Finance;
and
WHEREAS the City Council of the City of Palm Springs desires to formally adopt that
appropriations limit for the City.
WHEREAS the options for calculation will be California Per Capita Income and the City
of Palm Springs population growth;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs
that, in accordance with Article XIIIB of the Constitution of the State of California, the
appropriations limit for the City of Palm Springs for the fiscal year 2007-08 is
$111,471,355.
ADOPTED this day of July, 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) 55.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
CITY OF PALM SPRINGS
APPROPRIATION LIMIT CALCULATION
2007/2008 Page 1
A Last Year's Limit 106,518,537
B Adjustment Factors
1. Population% 1.0022
2. Per Capita Personal Income % 1.0442
Total Adjustment(81 X 82) 1.046497240
C Annual Adjustment((B-1.00)"A) 4,952,818
❑ Other Adjustments 0
E Total Adjustments 4,952,818
F This Year's Limit(07/08) (A+E) 111,471,355
Prepared by: Kim Hardcastle Prop 4 Limitation 7/1612007
060005
WORKSHEET#4 2007/2008 Page 2
A Proceeds of Taxes 64,711,851
B Exclusion 0
C Appropriation Subject to Limit 64,711,851
D Current Year Limit 111,471,355
E Over(Under) Limit(C-D) (46,759,504)
Prepared by: Kim Hardcastle Prop 4 Limitation 7/16/2007
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