HomeMy WebLinkAboutFY 1998/1999 Adopt Annual Appropriation Limit - Resolution N Council/Agency Meeting Held: G--15--9(f-
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signatur
Council Meeting Date: June 1<, 1998 Department ID Number: AS 98-011
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS � �
1_ m
SUBMITTED BY: RAY SILVER, City Administrator
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PREPARED BY: Robert J. Franz, Deputy City Administrato C
SUBJECT: Adopt Annual Appropriation Limit Required by Article 13(B) of the
California Constitution. Res , No , q 8 . q 6
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment
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: N/A
Recommended Action: Adopt an appropriation limit of $302,816,658 for the fiscal year
1998/99.
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 calculated.
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).
RESOLUTION NO. 98-46
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING THE APPROPRIATION LIMIT
FOR FISCAL YEAR 1998/99
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$302,816,558 for the fiscal year 1998/99.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach
at a regular meeting held thereon on the 15th day of June 1998.
Qx=�4d
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk C' tt'� 11 C - 3- `1 Y
REVIEWED AND APPROVED: MIT11ATE AND AP P VED:
r
y pity Administrator L.IIirector of A inistrative Se
resoltn\98-99fis-6/3/98
Res. No. 98-46
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 a regular meeting thereof held on the 15th day of June, 1998 by the following
vote:
AYES: Julien, Harman, Green, Dettloff, Bauer, Sullivan, Garofalo
NOES: None
ABSENT: None
City Clerk and ex-officio GWrk of the
City Council of the City of Huntington
Beach, California
G/resolutUresbkpg/97-80
REQUEST FOR COUNCIL ACTION
MEETING DATE: June 14, 1998 DEPARTMENT ID NUMBER: AS 98-011
• 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).
For 1998/99 the County population increase (1.69%) was greater than the increase in City
population (1.37%). The increase in per-capita personal income (4.15%) was greater than
the change in the assessment roll from the addition of local nonresidential new
construction (.10%).
On January 27, 1998 the City's auditors (Diehl, Evans and Company) reported to the City
Council that in adopting the appropriation limit for 1996/97, the resolution adopting the
appropriation limit did not include the revised per-capita income figures from the State
Department of Finance. The adopted limit for 1997/98 would have been $285,918,390 if
the revised factors had been used.
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 $80 million under the limit.
Below is a schedule of how the 1998/99 limit was calculated:
1997/98 Appropriation Limit as Adopted $287,393,564
Correction from January 27, 1998 Report from Diehl, Evans and Company (1,475,174)
Corrected 1997/98 Appropriation Limit 285,918,390
times change in per capita personal income 1.0415
times change in population 1.0169
1997/98 Appropriation Limit $302,816,658
Environmental Status: Not applicable.
City Clerk's
. . - NumberDescription
Resolution adopting the appropriation limit for 1998/99.
2 Copy of Report from Diehl, Evans and Company
RCA Author: Robert Sedlak
GANN9899.DOC -2- 06/03/98 2:15 PM
ATTACHMENT # 1
� - 6 • 3
RESOLUTION NO.
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING THE APPROPRIATION LIMIT
FOR FISCAL YEAR 1998/99
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$302,816,558 for the fiscal year 1998/99.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach
at a regular meeting held thereon on the day of 1998.
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk Ciiy Att?;"y
REVIEWED AND APPROVED: INITI TP AND AP P 4VED:
I
ity Administrator Director of A inistrative Se
resoltz0 s•99rs-6/3/98
ATTACHMENT #2
� - 6 . S
D_ IEHL, EVANS & COMPANY, LLP
- CERTIFIED PUBLIC ACCOUNTANTS& CONSULTANTS
•RODNEY K.Ma -1
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS MICHAEL R.LUDO...eA
CRAIG W. SPRAKER.CPA
18401 VON KARMAN,SUITE 200 •PH IN 11.1.PATEL,CPA
CPA
IRVINE,CALIFORNIA 92612-1542
•THOMAS M.PERLOWSKI,
.: (714) 757-7700 • FAX(714) 757-2707 •HARVEY1.SCHROEDER.C
'A PROFESSIONAL CO0.PORATIC
January 27, 1998
- INDEPENDENT ACCOUNTANTS' REPORT ON
AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET NO 6
-- = To the Honorable Mayor and Members of City Council
City of Huntington Beach
Huntington Beach, California
We have applied the procedures enumerated below to the accompanying Appropriations Li
Worksheet No. 6 of the City of Huntington Beach, California for the year ended September 30, 19
These procedures which were agreed to by the City of Huntington Beach, California and the Lea;
of California Cities (as presented in the League publication entitled "Article XIIIB Appr - --til
Limitations Uniform Guidelines") were performed solely to assist the City of Huntingto; .a
California in-meeting the requirements of Section 165 of Article X1IIB of the California Constitute
This engagement to apply agreed-upon procedures was performed in accordance with stand
established by the American Institute of Certified Public Accountants. The sufficiency of
procedures is solely the responsibility of the specified users listed in the last paragraph of this rep(
Consequently, we make no representation regarding the sufficiency of the procedures described be
- - - either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
- 1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year en
September 30, 1997, as presented in the League's "Article XIIIB Appropriations Limitai
- - -_ =- -- Uniform Guidelines" and compared the limit and annual adjustment factors included in
worksheet to the limit and annual adjustment factors that were adopted by resolution of the t
Council. We also compared the population and inflation options included in the aforementic
worksheet to those that were .selected by a recorded vote-of the City Council.
_-- _--- The appropriations limit for the year ended September 30, 1997 as adopted by City Counci:
August 5, 1996 was $271,664,286. The amount reported herein on the accompan;
--- ,-- - - -- Appropriations Limit Worksheet No. 6 is $270,269,944.
-1-
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY.SUITE 3-'
CARLSBAD.CALIFORNIA 92008-2389 ESCONDIDO.CALIFORNIA 92025-:
�► (760)729-2343•FAX(760)729-2234 (760)741-3141•FAX(760)741.98%
CITY OF HUNTINGTON BEACH
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended September 30, 1997
1. PURPOSE OF LIMITED PROCEDURES REVIEW:
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative),
California governmental agencies are restricted as to the amount of annual appropriations
from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under
Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to .
a limited procedures review in connection with the annual audit.
2. METHOD OF CALCULATION:
f
` Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the
t appropriations limit is required to be calculated based on the limit for the fiscal year
f 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.
3. INFLATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
t --- percentage change in the 4th quarter per capita personal income (which percentages are
supplied by the State -Department of Finance),- -or the percentage change in the local
assessment roll from the preceding year due to the change of local nonresidential
construction. The factor adopted by the City of Huntington Beach for the fiscal year
E 1996-97 represents the annual percentage change for per capita personal income.
4. POPULATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
percentage change of the jurisdiction's own population, or the annual percentage change in
population in the County where the jurisdiction is located. The factor adopted by the City
-._.. of Huntington Beach for the fiscal year 1996-97 represents the annual percentage change in
population for the County of Orange.
-- - 5. OTHER;ADJUSTMENTS:
A California government agency may be required to adjust its appropriations limit when
certain events occur, such as the transfer of responsibility for municipal services to, or from,
another government agency or private entity. _The City of Huntington Beach had no such
adjustments for the year ended September 30, 1997.
Unaudited; see independent accountants' report on agreed-upon procedures applied to
i - Appropriations Limit Worksheet No. 6.
F
! -4- •
CITY OF HUNTINGPON B ;H
APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended September 30, 1997
Appropriations limit for fiscal year ended
- September 30, 1996 (see Note 2) - - $ 255,528,420
Adjustment factors for the fiscal year ended June 30, 1997 (see Note 2):
Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor
1.0467 1.0105 1.057690 x .057690
Adjustment for inflation and population 14,741,524
Other adjustments (Note 5) -
Total adjustments 14,741,524
Appropriations limit for fiscal year ended September 30, 1997 $ 270,269,9,
F
Unaudited; see independent accountants' report on agreed-upon procedures applied to
--- - _ Appropriations Limit Worksheet No. 6 and accompanying notes.
VY
i
2. We compared the September 30, 1996 appropriations .limit presented in the accompanying
- Appropriations Limit Worksheet No. 6 to the September 30, 1996 appropriations limit adopted by
the City Council for the prior year.
I
No exceptions were noted as a result of our performing this procedure.
We were not engaged to, and did not, perform an audit, the objective of which would be the
expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly,
we do not express such an opinion. Had we performed additional procedures, other matters might
have come to our attention that would have been reported to you. No procedures have been
performed with respect to the determination of the appropriations limit for the base year, as defined
by the League publication entitled "Article XG)IB Appropriations Limitation Uniform Guidelines".
This report is intended solely for the use of the City Council and management of the City of
._.. Huntington Beach, California and should not be used by those who have not agreed to the procedures
and taken responsibility for the sufficiency of the procedures for their purposes. However, this report
is a matter of public record and its distribution is not limited.
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