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Home My WebLink About2015-36 CC Reso - Fixing Limitation on City Expenditures for FY15-16 RESOLUTION NO. 2015-36 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH FIXING LIMITATION ON CITY EXPENDITURES FOR FISCAL YEAR 2015-2016 WHEREAS, the provisions of Proposition 4, (Article XIII B of the California Constitution), the spending initiative, passed by the voters of the State of California, place a limitation on the expenditures of governmental agencies; and WHEREAS, the above referenced legislation requires the City of Ukiah to establish its appropriation limit for the 2015-2016 fiscal year; and WHEREAS, the Director of Finance of the City of Ukiah has computed the limitation of the City of Ukiah for the 2015-2016 fiscal year in accordance with the provisions thereof in the amount of $36,654,917. NOW, THEREFORE, BE IT RESOLVED, that the budgetary appropriation limitation of the City of Ukiah for fiscal year 2015-2016 is hereby fixed at $36,654,917, as set forth on Exhibit "A" attached hereto and made a part hereof by this reference. PASSED AND ADOPTED this 2 d day of September 2015, by the following roll call vote: AYES: Councilmembers Mulheren, Doble, Brown, Scalmanini, and Mayor Crane NOES: None ABSTAIN: None ABSENT: None Dougla . Crane, Mayor ATTEST: t �: .��1 . C, �zZ Kristine Lawler, City Clerk CITY OF UKIAH Exhibit"A" APPROPRIATIONS LIMITATION SUMMARY Fiscal Year 2015/2016 PROCEEDS OF TAXES $11,795,038 EXCLUSIONS 0 APPROPRIATIONS SUBJECT TO LIMITATION $11,795,038 CURRENT YEAR LIMIT $36,654,917 OVER (UNDER) LIMIT ($24,859,878) AVAILABLE CAPACITY AS A% OF LIMIT 67.82% In November, 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government Prop 4 became effective for the 1980181 fiscal year, but the formula for calculating the limits was based on the 1978179 "base year"revenues. In order to deal with an increasing number of complaints about the restrictions of Prop 4, and to increase the accountability of local government in adopting their limits, the voters approved Prop 111 in June 1990. Among other things, Prop 111 provides new adjustment formulas which should make the Appropriations Limit more responsive to local growth issues. It also requires an annual review of Limit calculations. The Appropriations Limitations imposed by Propositions 4 and 111 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The Limit is based on actual appropriations during the 1978179 fiscal year, and is increased each year using the growth of population and inflation. Not all revenues are restricted by the Limit, only those which are referred to as "Proceeds of Taxes." Page 1 of 4 (Exhibit "A") CITY OF UKIAH Spending Limit Calculation Fiscal Year 2015/16 APPROPRIATIONS SUBJECT TO LIMIT Fiscal year 2015/16 estimated revenues $15,249,652 Less: Nonproceeds of tax ($3,454,614) Plus: User fees in excess of costs 0 Total appropriations subject to limit: $11,795,038 APPROPRIATION LIMIT Fiscal year 2014/15 appropriation limit: $35,302,689 A. Cost of living adjustment 1.0382 B. Population adjustment" 1.0001 Change Factor(A x B) 1.0383 Increase (decrease) in appropriation limit $1,352,228 FISCAL YEAR 2015/16 APPROPRIATION LIMIT $36,654,917 REMAINING APPROPRIATION CAPACITY $24,859,878 Available capacity as a percent of limit 67.82% Based on percentage change in California per capita income. Based on annual population change for Ukiah. Page 2 of 4 (Exhibit "A") CITY OF UKIAH Spending Limit Calculation Fiscal Year 2015/2016 PROCEEDS NON-PROCEEDS REVENUE SOURCE OF TAX OF TAX TOTAL Property tax $ 1,341,155 $ 1,341,155 Retail sales/use tax 5,162,724 5,162,724 Transient occupancy tax 1,052,621 1,052,621 Business license tax 354,972 354,972 Real property transfer tax 30,000 30,000 Motor vehicle in-lieu 1,277,963 1,277,963 Measure S 2,506,738 2,506,738 Tobacco Retailers Lic Tax 800 800 Licenses & permits 134,650 134,650 Franchise fees 1,500,360 1,500,360 Rental Income/Program Fees 669,002 669,002 Charges for services 758,571 758,571 Other revenue 372,095 372,095 SUBTOTAL $ 11,726,973 $ 3,434,678 $ 15,161,651 PERCENT OF TOTAL 77.35% 22.65% 100.00% INTEREST INCOME $68,065 $19,936 $88,001 TOTAL-GENERAL FUND $11,795,038 $3,454,614 $15,249,652 (excludes interfund transfers & Central Services Allocations) Page 3 of 4 (Exhibit "A") CITY OF UKIAH Appropriation Limitation Adjustments for the Last Ten Years BUDGET PRICE POPULATION CHANGE PRIOR YEAR CURRENT YEAR FACTOR FACTOR FACTOR APPROP LIMIT APPROP LIMIT 2006/2007 1.0396 0.9966 1.0361 $27,346,687 $28,486,475 2007/2008 1.0442 1.0017 1.0460 $28,486,745 $29,894,305 2008/2009 1.0429 1.0010 1.0439 $29,894,305 $31,401,243 2009/2010 1.0062 1.0016 1.0078 $31,401,243 $31,760,230 2010/2011 0.0975 1.0010 0.0976 $31,760,230 $31,074,238 2011/2012 1.0251 1.0025 1.0277 $31,074,238 $31,997,546 2012/2013 1.0377 1.0021 1.0399 $31,997,546 $33,273,581 2013/2014 1.0512 1.0049 1.0564 $33,273,581 $35,148,577 2014/2015 0.9977 1.0067 1.0044 $35,148,577 $35,302,689 2015/2016 1.0382 1.0001 1.0383 $35,302,689 $36,654,917 Page 4 of 4 (Exhibit "A")