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HomeMy WebLinkAbout06/27/1989, 1 - APPROPRIATION LIMIT FOR 1978-79 THROUGH 1989-90. EETJNrg OVER city of San WIS OBISPO "" �89 glig COUNCIL AGENDA R ORT ""u FlMM: William C. Statler, Director of Finance sammAz, r;at;cgs Limit for 1978-79 thrnygh 198990. RECEIVED cm J1Nr 1 ��• Adopt by resolution the Aazqz- Limits f= 1978-79 tbrouih 198990. CtTYCLERK SAN LUIS08ISPO.CA or, May 15,- 1989, the City Council was provided the status of the City's :1% g matian I mit fr= 1978-79 to 1987-88 with projections through 1999-00. As meed in this Report, the City should have a favorable vada= in the apprcpriation limit U=i;h 1991-92- Additionally, the May 15, 1989 Report reviewed the basis for oca utation of the appro- priation limit: * nYpomr,-;aticn adjustments axe limited to the 1978-79 a�ri,ation level plus ranges in cost of living, pcpu aticn, and transfers in service responsibility- * Rwomi s received from service dnarges, cant prams► fines, forfeitures, and other "ncn-tax" sources are not subject to the appropriation limit. * Unrestricted State subventicans obtor vehicle, Cigarette, and In-Lieu, Taxes) are considered to be tax sources and subject to limitation. * Tax revenues in excess of the Appropriation, Limit require a public vote to gr=ease the limit or sett be returned within the next two fiscal years. As provided in E&dbit "A" of the Resolution, the City's Appropriation Limit from 1979-80 through 1989-90 was computed based on darge_s in papulation and the cost of living as pmwided by the State of California, Department of Finance. Additionally, the appmopria- tiara limit has been adjusted to recognize a recent Court of Appeal ruling that exempted Franchise Flees in the calculation of the appropriaticn limit. Using 1989-90 as an example, this adjustment results in a minimal, favorable adjustment as reflected below: PREVIQS REVISED NEI= MEDW VARIANCE riaticns Limit $181453,006 $1789981,848 $454,158 Tax Proceeds Subject to Limit 17.225.000 16.753.800 471.200 Variance F=m Limit $ 1,228,006 $ 11245,048 17,042 SMOM As disused at the May 15, 1989 meeting, the City is not expected to encounter any dif- ficulty with its.appropriation limit until 1991-92. For 1989-90, the :19 1 .at;On limit has been calculated to be $17,998,848; which represents a favasable variance of apprmd- mately $1.1 miLUM from projected revenues subject to the limit. Attachment: Resolution RE90Ii BD. (1989 Series) A Rmom= OF TFC a70N;.'m OF THE QTY OF SAN LUIS On= FSTNEUSHINi THE LUCM A= FUR FISCAL 7dMURS 1978-79 TMMM 1989-90 WHERER4, the wrters ao=4ed the Gann Spending-Llmltat= Initiative (Pmposition 4) On November 6, 1979 adding Article XIII B to the Qxr titution of the State of California to establish and define annual an= pr ation limits on State and local govesimrent entities; and, WfEF"Z, SB 1352 provides for the of Article XIII B by defining v-ariaus terms used in this article and prescribing procedures to be used in i'Vlementing specific pzoyisions of the article, including the estab- lishment, by resolution each year by the governing body of each local jurisdic- tion of its appropriations limit; and, WHEREAS, the rapired emputati,ons to determine the Appropriat.] Limit for FY 3.978-79 th uugh FY 198990 have been performed by the Department of Finance and are on file with the Office of the City Clerk, and available for public review; and, WHEREAS, these ccu utatians are provided in Exhibit "A" Which is herein incorporated by reference and attached hereto. MW ' , THE MY OCJ(IlQC L OF IBE aM OF SAN IDIS OBISPO DOES RESOLVE AS FOLLOWS: SFX.TIM 1. The Appropriations Limits for the City of San Luis Obispo for Fiscal Year 1978-79 thra;gh Fiscal Year 1989-90 are the am=its provided at Exhibit "A". SDLRXM 2. The City Cleric shall certify to the adoption of this resclu- tion and shall cause this resolution and certification to be filed in the Office of the City Clerk. On motion of seconded by , and on the following roll call vote: A3 G: DAPS: ABSENT: the foregaing Resolution: was adopted day of , 1989. ATIM: Mayor Rom s Oity Merle ` . - 7 City tine cer Director of Finance ate,-A.. - CITY OF SAN LUIS OBISPO APPROPRIATION LIMIT HISTORY FISCAL LIMIT CPI OR POPULATION GROWTH APPROPRIATION ACTUAL BUDGET YEAR BASE INCOME GROWTH FACTOR LIMITATION SUBJECT TO LIMIT DIFFERENCE 1978-79 $8,018,152 E8,018,152 0 1979-80 8,018,152 1.1017 0.9966 1.0980 8,803,564 6,189,680 2,613,884 1980-81 8,803,564 1.1211 1.0052 1.1269 9,920,998 5,795,468 4,125,530 1981-82 9,920,998 1.0912 1.0103 1.1024 10,937,298 8,296,846 2,640,452 1982-83 10,937,298 1.0679 1.0259 1.0956 11,982,451 8,247,797 3,734,654 1983-84 11,982,451 1.0235 1.0142 1.0380 .12,438,188 9,414,875 3,023,313 1984.85 12,438,188 1.0474 1.0213 1.0697 13;305,250 10,356,484 2,948,766 1985-86 13,305,250 1.0374 1.0204 1.0586 14,084,445 11,451,837 2,632,607 1986-87 14,084,445 1.0230 1.0297 1.0534 14,836,316 13,081,776 1,754,540 1987-88 14,836,316 1.0304 1.0071 1.0377 15,395,880 14,411,701 984,179 1988-89 15,395,880 1.0393 1.0410 1.0819' 16,656,977 15,223,479 1,433,497 1989-90 16,656,977 1.0498 1.0293 1.0806 17,998,848 16,753,800 1,245,048 EXHIBIT "A"