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HomeMy WebLinkAboutFY 1997/1998 Adopt Annual Appropriation Limits - Resolution(r r, .- .". Council/Agency Meeting Held: -76 A -7 Deferred/Continued to: Conditionally Council Meeting Date K City CI s Signature July 7, 1997 1 Department ID Number: AS 97-030 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator PREPARED BY: Robert J. Franz, Deputy City Admini SUBJECT: Adoption of the 1997/98 Annual Appropriation Limit Statement of Issue, Funding Source, Recommended Action, Alternative Action, Analysis, Environmental Status, Attachment(s) Statement of Issue: Article 13(B) of the California Constitution (The Gann Appropriation Limit) requires the City to annually adopt an appropriation limit of proceeds of taxes. Funding Source: Not applicable Recommended Action: Motion to adopt an appropriation limit of $287,393,564 for the fiscal year 1997/98. Alternative Action(s): 1. Do not adopt an appropriation limit in which case the prior year limit applies. 2. Adopt the limit with different factors Analysis: In November, 1979, the California voters approved Article 13(b) of the California constitution which allows the City's spending of proceeds of taxes to grow only by factors from the base years of 1978/79. In June, 1990 Proposition 111 was passed which changed the way the limit is calcualated. Increases to the Limit - The City may increase its limit annually in two ways: • By a percentage equal to the increase from the preceding year in county or city population (whichever is greater). • By an amount equal to the change in per capita personal income in California or the change in the assessment roll from the preceding year to the addition of local nonresidential new construction (whichever is greater). REQUEST FOR COUNCIL ACTION MEETING DATE: July 7, 1997 DEPARTMENT ID NUMBER: AS 97-030 For 1995/96 the County population increase (1.07%) was greater than the increase in City population (.46%). The increase in per -capita personal income (4.67%) was greater than the change in the assesment roll from the addition of local nonresidential new construction (.07%). The City is far below its allowable appropriation limit and no further analysis was performed since the City's total budget is projected to be at least $70 million under the limit. Below is a schedule of how the 1997/98 limit was calculated: 1996/97 Appropriation Limit $271,664,286 Times change in per capita personal income 1.0467 Times change in population 1.0107 .. 1997/98 Appropriation: Limit $ 287,393_,564 Environmental Status: Not applicable. �.97-(1-3 Resolution adopting the appropriation limit for 1997/98 0026355.01 -2- 06/26/97 3:25 PM ATTACHMENT RESOLUTION NO. 97-43 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 1997/98 WHEREAS, Article 13B of the State of California imposes upon state agencies and local government the obligation to limit each fiscal year's appropriations of the proceeds from taxes to the amount of such appropriations in fiscal year 1978/79 adjusted for changes as prescribed under the law. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that in compliance with the provisions of Article 13B of the California Constitution and the formula set out therein, there is hereby established an appropriation limit of $287,393,564 for the fiscal year 1997/98. PASSED AND. ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereon on the 7th day of. July , 1997. ATTEST: City Clerk REVIEWED AND APPROVED 'etity Administrator /19!f< Mayor APPROVED AS TO FORM: City Attorney,,,/ 5 /j n/app97/986/24/97 Res. No. 97-43 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 7th day of July,1997 by the following vote: AYES: Harman, Dettloff, Bauer, Sullivan, Green, Garofalo NOES: None ABSENT: Julien � 4��4� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/re so l uti/resUpg/97-39