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HomeMy WebLinkAbout9/3/2003 - STAFF REPORTS (14) DATE: September 3, 2003 TO: City Council FROM: Director of Finance and Treasurer CITY OF PALM SPRINGS 2003-04 APPROPRIATION LIMIT RECOMMENDATION: That the City Council of the City of Palm Springs adopt a resolution establishing an appropriations limit for the 2003-04 fiscal year in accordance with Article X111 B of the California Constitution. BACKGROUND: 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 2003- 04 appropriation limit is calculated to be $92,158,601. It is important to point out that only specific revenues and appropriations are subject to limitation All of the City's enterprise and intragovernmental service funds are exempt. In addition, Federal funds are exempt. The appropriation amount subject to the limit was calculated to be $47,355,329 which is$44,803,272 less than the 2003-04 appropriation limit. The actual calculation is very detailed and is not provided with this report, but is available for review at the office of the Director of Finance. As mentioned earlier, the approach used follows the basic guidelines provided by the League of California Cities. APPROVED: David H. Ready Thomas M. Kanarc City Manager Director of Finance and Treasurer ATTACHMENT: Resolution RESOLUTION NO. 20717 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR ENDING JUNE 30, 2004. 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 County of Riverside 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 2003-04 is $92,158,601. ADOPTED this 3rd day of September , 2003. AYES: Members Hodges, Mills, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED