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93-114 RESOLUTION NO. 93R-114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1993/94. WHEREAS, the voters of California on November 6, 1977, added Article XIII B to the State Constitution placing various limitations on the appropriations of the state and local governments; and WHEREAS, Article XIII B of the State Constitution provides that the appropriations limit for fiscal year 1993/94 is calculated by adjusting the 1992/93 fiscal appropriations limit for changes in the cost of living and population except as otherwise provided in said Article XIII B; and WHEREAS, the information necessary for making these adjustments is attached in Exhibits A through G; and WHEREAS, the City of Anaheim has complied with all the provisions of Article XIII B of the State Constitution in determining the appropriations limit for fiscal year 1993/94 be established in the amount of $355,091,713.00. BE IT FURTHER RESOLVED that the City Council of the city of Anaheim, by recorded vote of the City Council adopting this resolution, hereby determines and selects that, with regard to fiscal year 1993/94 and the calculations specified herein for such fiscal year, the term "change in the cost of living" for purposes of Section 8(e) (2) of Article XIII B of the Constitution of the State of California shall mean the percentage change in the California per capita personal income from the preceding year. BE IT FURTHER RESOLVED that the City Council of the city of Anaheim, by recorded vote of the City Council adopting this resolution, hereby determines and chooses that, with regard to fiscal year 1993/94 and the calculations specified herein for such fiscal year, the term "change in population" for purposes of Article XIII B of the Constitution of the State of California and Division 9 of Article 1 of the Government Code of the State of California shall mean the change in population within the City of Anaheim. BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed as deemed necessary by resolution of the City Council. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 22~ day of June , 1993 . ATTEST: CITY CLERK OF THE CITY OF ANAHEIM 2003.1\£EGAN\June 2, 1993 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 93R-114 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 22nd day of June, 1993, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 93R-114 on the 23rd day of June, 1993. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 23rd day of June, 1993. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 93R-114 was duly passed and adopted by the City Council of the City of Anaheim on June 22, 1993. CITY CLERK OF THE CITY OF ANAHEIM EXHIBIT A 1993/94 APPROPRIATIONS LIMIT CALCULATIONS AND COMPARISON OF APPROPRIATIONS SUBJECT TO LIMIT FY 1992/93 Adopted Appropriations Limit $337,996,017 Adiustment Factor 1.0506 FY 1993/94 Appropriations Limit $355,091,713 FY 1993/94 Appropriations Limit $355,091,713 ~ t 993/94 Appropriations Subject To Limit 138,535,112 FY 1993/94 Appropriations Limit Margin $216,556,601 FY 1993/94 Appropriations Limit Margin, As a Percent of Limit 61.0% EXFIIBIT B 1993/94 APPROPRIATIONS LIMIT ADJUSTMENT FACTORS POPULATION - Selected Factor: City Population Growth Population count provided by the State Finance Department 285,477 Population percent change pursuant to Sections 2227 and 2228 of the "~uvenue and Taxation Code 2.28% CHANGE IN COST OF LIVING - Selected Factor: California Per Capita Personal income Growth 2.72% POPULATION AND PRICE FACTOR CONVERTED TO AN ADJUSTMENT FACTOR A) Population - City, Converted to a factor 1.0228 B) Cost of Living - Calif. Per Cap Income 2.72%, " Converted to a factor 1.0272 Ratio of change: A X B = 1.0506 EXHIBIT C 1993/94 APPROPRIATIONS LIMIT APPROPRIATIONS SUBJECT TO LIMIT CALCULATION Totals Total All Revenues $689,117,220 Reduce by Non-Proceeds of Taxes 540,073,296 $149,043,924 Add User Fees in Excess of Costs 0 149,043,924 Add User Fees in Replacement of Taxes 3,201,309 152,245,233 Subtract Revenues Supporting Federal Mandates (FLSA) 154,713 152,090,520 Subtract Qualified Capital Projects 12,797,260 139,293,260 Subtract Debt Service Appropriations 758, t 48 $138,535,112 Total All Appropriations $689,117,220 Reduce by Non-Proceeds of Taxes 540,073,296 $149,043,924 r~,.,¢tract Debt Service Appropriations 758,148 148,285,776 Subtract Revenue~ Supporting ~ Federal Mandates (FLSA) 154,713 148,131,063 Subtract Qualified Capital Projects 12,797,260 135,333,803 Add User Fees in Excess of Costs 0 135,333,803 Add Appropriations for Functions Formerly Tax Supported 3,201,309 Appropriations Subject to Limit $138,535,112 EXHIBIT D 1993/94 APPROPRIATIONS LIMIT PROCEEDS OF TAXES CALCULATION PROCEEDS NON-PROCEEDS OF TAXES OF TAXES TOTAL T~es $120,678,753 $120,678,753 State Subventions 11,027,504 11,027,504 Service Charges 2,255,207 44,045,180 46,300,387 Permit Fees 4,835,363 4,835,363 Fines and Forfeitures 2,304,406 2,304,406 ~Bl~tals 35,991,700 35,991,700 Sales 10,270,000 330,564,671 340,834,671 Refunds and Reimbursements 9,255,050 9,255,050 Internal Service Charges 82,074,016 82,074,016 Federal and County Subventions 6,074,554 6,074,554 Contributions 7,067,409 7,067,409 Subtotal $144,231,464 $522,212,349 $666,443,813 Interest 4,812,460 17,860,947 22,673,407 Total All City Revenues $1,49,043,924 $540,073,296 $689,117,220 Use of (Contribution to) Fund Balances (18,067,992) Mello-Roos CFDs (Seperate Limits) , 4,630,327 "... Redevelopment Agency 47,326,368 Housing Authority 34,389,800 Grand Total 757,395,723 33,973,0~0 574,5~0 1,513,725 SALES 1,760 123,418 ANALYSIS OF PROJECTED RE~rENUES STATE SEFI~CE PERMIT T~O(ES SUBVENTIONS CHARGES FEES INTERNAL FINES & REFUNDS & SEFA/1CE FED & CO. 92,560 27,003 TEXT OF ~ANN SI~ENDIN(J-I,IMiTATION INITIATIVE EX~II3IT F LIMITATION OF GOVERNMENT APPROPlIIATIONS. INITIATIVE CONSTITUTIONAl, AMENDMENT. Establishes and defines annual approl)ri.tion lindIs on stutc and local governmental entities based on annual appropriations for prior fiscal year. Requires adjustments for 'ehanges in east of living, population and other specified factors. Appropriation limits may be established or temporarily changed by electorate. Requires revenues received in excess of appropriations permitted by this measure to be returned by revision of tax rates or fee sehedules within two fiscal years next following year excess created. With exceptions, provides for reimbursement of local governments for new programs or higlmr level of services mandated by state, Financial Impact: Indeterminabte. ARTICLE Xlll B. Sec. 1. The total annual appropriations subject to limitation of the state and of each local government shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in the cost of living and population except as otherwise provided in this Article. Sec, 2. Revenues received by ally entity of government in excess of that sinaunt which is appropriated by such entity in compliance with this Article during the fiscal year shall be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years. Sec. 3. The appropriations limit for any fiscal year pursuant to Sec. I shall be adjusted as follows: (a) In tile event that the financial responsibility of providing services is transferred, in whole or in part, whether by annexation, incorporation or otherwise, from one entity of government to another, then for the year in which such transfer becomes effective tile appropriations Jimit of the transferee entity shall be increased by such reasonable amount as the said entities shall mutually agree and the appropriations limit of the transferor entity shall be decreased by the same amount. (b) In tile event that the financial responsibility of providing services is transferred, in whole or in part, from an entity of government to a private entity, or tile financial source for the provision of services is transferred, in whole or in part, from other revennea of an entity of government, to regulatory licenses, user charges or user fees, then for tile year of such transfer tile appropriations limit of such entity of govermnent shall be decreased accordingly. (c) Ill tile event of all emergency, the appropriation limit may be exceeded provided ttmt the appropriation Illnits in tile following three years are reduced accordingly to prevent uu aggregate increase in appropriations resulting from tile emergency. Sec. 4. The approprialious limit imposed on any new or axisling entity of government by this Article may be established or changed by the electors of such entity, subject to and in conformity with constitutiomd and statutory voting requirements. The duration of any such change shuIl he as determined by said electors, but shall in no event exceed four years froIll Ihc most recent vote ol~ said electors creating or continuing such chan~c. lof 3 ~ '~ EX~IIBIT F Sec. 5. E~lch entity of gl~uernmcnl n,ay establish ~uch eontiugency, ~mergency, unemployment, reserw. retirement, sinking fund, trust. or simlblr funds us il shall deem reasoimble and proper. Contributions to lil{~ SUCh fu~l, tn 1he eAtent tirol such contributions ~re derived from lhe proceed~ Of t~xe:~, shal} ~or purposes o~ th}~ Articlc eonstitutc appropriations ~ubjeet io limit,ili(,h il, {ira yc~lr o~ eo,dribution. Neither withdr. waJs from uny such fund, nor expenditures ,){ (or nuthorization~ to ex{mnd) :m~h withdrawals, nor transfers betwee~ or amo~g such ~un(J8, shuJJ fOl' purposes of tills Article mmstilute appropriations subject t(~ hmit,tion. See. 6. Whenever the Legislature or any s{t{{e agency mandates a new program or higher level o~ service on any local government, the state shall provide a subvention of funds to reimburse such local government for lh,~ eosts of such program or increased level of servi~m, except that the l,egislature ~n~y, bui need not, provide such subvention of fun~ for the following mandates: (a) Legislalive mandates requested by the local agency affected; (b) 'Uegislation defining a new crime or changing an existing definition of a crime; or (c) I,egisl,tive mandates enacted Drior Io January 1, 1975, or executive orders or regulations initially implementing legislation enacted prior to January 1, 19~5. See. 7. Nothing in this Article shall be construed to impair the ablility of the state or of any local government to meet its obligations with respect to existing or future bonded indebtedness. See. 8. As used in this Article and exeep~ us etherwise expressly provided herein: (~) "Appropriationa subject to hmitatiou" of the state shall mean any authorization to ex~nd during a fiscal year the proceeds of taxes levied by or for the state, exclusive of state subventions for the use and ooeration of local government {other than subventions mode pursuant to Section 6 of lids Article) and further exclusive of refunds of taxes, benefit payments from retirement, unemployment insurance and disability insurance funds; (b) "Appropriations subject to limitation" of an entity of local government shall mean any authorization to ex~nd during a fiscal year the proceeds of taxes levied by or for that entity and the proceeds of state subventions to that entity (other than subventions made pursuant to Section 6 of this Article) exclusive of refunds of taxes; (e) "Proceeds of taxes" shall include, but not be restricted to, all tax revenues and the proceeds to an entity of government, from (i) regulatory licenses, user charges, and user fees to the extent that such proceeds exceed the costs reasonably borne by such entity in providing Ibe regulation, product, or service. and (it) the inveslment of tax revenues. With respect to any local government, "proceeds of taxes" shall include .}aubventinns received from the state, other than pursu,ud to Section 6 of this Attic}e, and, with respect to the state, proceeds of taxes slmll exclude such subventions; (d) "l.oeal gov{~rnment'~ shall me,n any city,. county, city and county, school district, ~peeml district, nutlu)rity, or other political subdivision of or within the state; (,:) "Cost ol' living" slmll mc~m lhe COnsume,' Price Index for the United States as reported by the Untied Stt~tes I)elmrtmenl ,)f Labo,, or successor agencyfir the Letted States (Joyeminent; provided, bowever, Ih~lt for purposcs of Section 1, the change it, cost of living fr<}m the preceding year slmll in uo event exceed the clmnge in California per cot)itc petsoval income from said preceding ye,r; 2of 3 ~. -~ EXIIIBIT F (f) "Population" of any entity of government, otla.r tlJUu u .-;chool ,li.~triet, shall be determined by a method prescribed by the Legibleits'c, pi'ovided that such determination shall be revised, as necessary, to reflect the periodin ccn~us cundu(~tcd by tl~e United States I)cpartmenl of (?oremetre, or sai,t~t.ss(H' t~l~e~ley o~ the United States (lovcrnment. The i~[)ulalion of lilly school dtslriet slmll bc such school distriet's average daily attendaliCe as determined by a method prescribed by the l,cgisluture; (g) "Debt service" shall mean apl)t'opriations requiced to pay the cost of interest and rcdbmption charges, inchiding the funding of any reserve or sinking fund required in connection therewith, on indebtedness existing or legally authorized as of January 1~ 1979 or on bonded indebtedness thereafter approved according to law by a vote of the electors of the issuing entity voting in an election for such purpose. (h) The "appropriations limit" of each entity of government for each fiscal year shall be that amount which total annual appropriations subject to limitation may not exceed under.Section I and Section 3; provided, however, that the "appropriations limit" of each entity of government for fiscal year 19?8-79 shall be the total of the appropriations subject to limitation of such entity for that fiscal year. For fiscal year 1978-~9, state subventions to local governments~ exclusive of federal grants, sha~ be deemed to have been derived from the proceeds of state taxes. (i) Except as otherwise provided in Section 5, "appropriations subject to limitation" shall not include local agency loan funds or indebtedness fun~, investment authorizations to invest) funds of the state, or of an entity of local government in accounts at banks or savings and loan associations or in liquid securities. See. 9. "Appropriations subject to limitation" for each entity of government shall not include: (a) Debt service. (b) Appropriations required for purposes of complying with mandates of the courts or the federal government which, without discretion, require an expenditure for additional services or which unavoidably make the providing of existing services more costly. (el Appropriations of any special district which existed on danuacy 1, 1978, and which did not as of the 1977-78 fiscal year levy an ad valorem tax on property in excess of 12~ cents per $100 of assessed value; or the appropriations of any special district the~l existing or: thereafter created by a vote of the people, which is totally funded by other than the proceeds of taxes. See. 10. This Ariicle shall be effective coalmeueing with the first day of the fiscal yeur following its adoption. See. II. If any apl)roprialion category shall be added to or removed from appropri~lions subject to limitation, pta'suuut to final judgment of any court of competent jurisdiction uud any apl~ml therefrom, the approp¥iations limit shall be adjusted accordingly. If ~n,y ~cetion, pt~ct, ehluse or phrase in this Article i~ for any reason held invalid or unconslilutional, the remuininl~ portions of this Article shall not be affected but shall remain in full force and effect. ~.. 3of 3 ~TATE OF CALIFORNIA EXHIBIT G PETE WILSON. Governor DEPARTMENT OF FINANCE ~ 915 L STREET SACRAMENTO, CA 95814-4998 April 30, 1993~ PRICE AND POPULATION DATA FOR LOCAL JURISDICTIONS Appropriations Limit Article XIII B of the California Constitution specifies that appropriations made by State and local governments may increase annually by a factor comprised of the change in population combined with either the change in California per capita personal income or the change in the local assessment roll due to local nonresidential construction. The Departmen.t of Finance is mandated to provide the population and California per capita personal income change data for local jurisdictions to calculate their appropriation limits. lhe change in the local assessment roll due to local nonresidential construction may be obtained from your county Assessor. The enclosures contain price and population factors for setting your 1993-94 ~appropriation 1 imit.. "Enclosure I prov'ides the change in California's per capita personal income price factor. An example of how to utilize this price factor and the population percentage change factor in calculating your 1993-94 limit is included. Enclosure II provides the population ~ercentage change factors for cities and counties. - Enclosure IIA provides the population percentage change factor for counties and for the total incorporated population of each county. These population percentage changes were prepared pu'rsuant to Sections 2227 and 2228 of the Revenue and Taxation Code and are calculated as of January 1, 1993. Section 2227 specifies that sl~ate mental institutions, federal military bases and state and federal prisons be excluded from the percentage change calculations. Population Factors for Cities and Counties Cities and counties should consult Section 7901 of the Government Code for the various population factors that may be used for purposes of change in population. Population Factors for Special Districts Special districts should consult Section 7901 of the Government Code and Section 2228 of the Revenue and Taxation Code for the various population factors that may be used for purposes of change in population, EXltlBIT G April 30, 1993 Page 2 , Article XIII B, Section 9(c) states that special districts in existence on January 1, 1978, which levied a tax of 12-1/2 cents or less per $100 assessed value on property within their boundaries as of the 1977-78 fiscal year are permanently exempt from e~tablishing appropriation limits. In addition, any special districts in existence or created thereafter whose sole funding source is from nonproCeeds of taxes are also exempt. Therefore, special districts which meet either of these two tests do not need to establish appropriation limits. This letter may be received by special districts, which were exempt from establishing appropriation limits by Article XIII B, Section 9(c). Receipt of this letter should not be construed as a requirement by the Department of Finance to establish an appropriation limit. Certification The certification program applies to cities and counties only and does not apply to special districts. Sections 11005.6 and 30462.1 of the Revenue and Taxation Code, Section 21022 Streets and Highways Code, and Section 38421 Vehicle Code specify that if a Department of Finance population estimate is greater than the current certified population the Department shall automatically file a certified copy with the Controller not less than 25 days nor more than 30 days after completion of the estimate. The Department will certify the higher estimate unless a written request not to certify is received by the Department from the city or county within 25 days of the completion of the estimate. A city or county requesting that their higher estimate not be certified will remain at the current certified population. The Department of Finance will not certify a population estimate that is lower than the current certified population unless requested to do so by a city or a county. The request for certification must be received by the Department on or before June 1, 1993. Further Information Questions regarding per capita income data should be referred to the Economic Research Unit at (916) 322-2263. Questions concerning population should be directed to the Demographic ,P~esearch Unit at (916) 322-4651. Sincerely, THOMAS W. HAYES Director Enclosures EXU1BiT G Enclosure I A. Price Factor: Article XIII B specifies that local jurisdictions select their cost-of-living factor to compute their appropriation limit by a vote of their governing body. Local jurisdictions may select either the percentage change in California per capita personal income or the percentage change in the local assessment roll due to the addition of local nonresidential new construction. If the percentage change in per capita personal income is selected, the percentage changes to be used in setting 1993-94 appropriation limit are: Per Capita Personal Income · - · Fiscal P6rcentage change Year (FY) over prior year ~ 1993-94 2.72 B. Following is an example using sample population changes and the changes in California per capita personal income as growth factors in computing a 1993-94 appropriations limit.* 1993-94: Per Capita Change : 2.72 percent Population Change = 1.85 percent Per Capita converted to a ratio: 2.72 + 100 = 1.0272 100 Population converted to a ratio: 1.85 + 100 : 1.0185 100 Calculation of factor for FY 93-94: 1.0272 x 1,0185 = 1.0462 Conversion of the factor to a ratio eliminates minus numbers. EXIt[B£'£ U ENCLOSURE II ANNUAL PERCENTAGE CHANGE IN POPULATION MINUS EXCLUSIONS* JANUARY l, )992 DATE PRINTED TO JANUARY 1, 1993 AND TOTAL POPULATION JANUARY I, 1993. 04/26/93 POPULATION MINUS EXCLUSIONS POPULATION ANNUAL TOTAL COUNTY PERCENT CHANGE POPULATION CITY 1992 TO 1993 1-1-92 1-1-93 1-1-93 ORANGE ANAHEIM 2.28 279,124 285,477 28~ 477 BREA 1.51 33,494 34,001 34,001 BUENA PARK 1.34 70,749 71,696 71,696 COSTA MESA 2.70 97,350 99,977 101,048 CYPRESS 1.74 44,172 44,942 44,942 DANA POINT 2.49 33,131 33,957 33,957 FOUNTAIN VALLEY 0.86 53,798 54,260 54,260 FULLERTON 1.89 117,305 119,527 119,527 GARDEN GROVE 1.21 147,914 149,700 149,700 HUNTINGTON BEACH 1.13 184,771 186,866 186,866 IRVINE 2.76 113,375 116,506 117,902 LAGUNA BEACH 1.q6 23,904 24,253 24,253 LAGUNA HILLS 2.02 24,500 24,994 24,994 LAGUNA NIGUEL 4.78 50,157 52,552 52,552 LA HABRA 1.64 52,320 53,177 53,177 LAKE FOREST 1.29 57,443 58,182 58,182 LA PALMA 0.35 15,580 15,635 15,635 LOS ALAMITOS 1.05 11,170 11,287 12,173 MISSION VIEJO 11.76 75,241 84,087 84,087 NEWPORT BEACH 1.15 68,005 68,784 68,784 ORANGE 1.65 114,374 116,259 116~259 PLACENTIA 3.13 41,788 43,096 43,096 SAN CLEMENTE 2.41 43.127 44,166 44,166 SAN JUAN CAPISTRANO , 1.77 27,419 27,904 27,904 SANTA ANA 1.27 304,523 308,379 308,379 SEAL BEACH 2.5,1 24,615 25,234 26,031 STANTON 2.0~ 31,336 31,978 31,978 ,~TUSTIN 6.87 49,422 52,818 57,454 VILLA PARK 1.22 6,325 6,402 6,402 WESTMINSTER 1.52 79.855 81,072 81,072 YORBA LINDA 2.80 54,998 56,540 56,540 UNINCORPORATED 0.67 157,975 159,039 164,852 ORANGE COUNTY 2.15 2,489,~60 2,542,747 2,557,346 * EXCLUSIONS INCLUDE STATE MENTAL INSTITUTIONS, FEDERAL MILITARY BASE-S AND STATE AND FEDERAL PRISONS. 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