RES-1989-225RESOLUTION NO. 89R-225
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM, CALIFORNIA, ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR
1989/90.
WHEREAS, the voters of California on November 6, 1977,
added Article XIIIB to the State Constitution placing various
limitations on the appropriations of the state and local
governments; and
WHEREAS, Article XIIIB of the State Constitution
provides that the appropriations limit for fiscal year 1989/90 is
calculated by adjusting the 1988/89 fiscal appropriations limit
for changes in the cost of living and population except as
otherwise provided in said Article XIIIB; 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 XIIIB of the State Constitution in
determining the appropriations limit for fiscal year 1989/90.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Anaheim that the appropriations limit for fiscal year
1989/90 be established in the amount of $123,176,083.00.
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 13th day of June, 1989.
ATTEST:
CITY CLERK OF THE CIT OF ANAHEIM
MES/lm
2460L
051289
CLERK
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. 89R-225 was introduced and adopted at a regular
meetin8 provided by law, of the City Council of the City of Anaheim held on
the 13th day of June, 1989, by the following vote of the members thereof:
AYES:
COUNCIL MEMBERS: Daly, Ehrle, Pickler, Hunter and Kaywood
NOES:
COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 89R-225 on the 14th day of June, 1989.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 14th day of June, 1989.
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. 89Ro225 duly passed and
adopted by the Anaheim City Council on June 13, 1989,
CITY CLERK OF THE CITY OF ANAHEIM
CITY OF ANAHEIM
APPROPRIATIONS LIMIT
FOR THE FISCAL YEAR COMMENCING JULY 1, 1989 AND ENDING JUNE 30, 1990
EXHIBIT A
1989/90 APPROPRIATIONS LIMIT
CALCULATIONS AND COMPARISON OF APPROPRIATIONS SUBJECT TO LIMIT
FY 1988/89 Adopted Appropriations Limit
Adjustment Factor
FY 1989/90 Appropriations Llmit
1,0545
$116,804,796
$123,176,083
FY 1989/90 Appropriations Limit
FY 1989/90 Appropriations Subject To Limit
Appropriations Limit Margin
$123,176,083
110,911,765
$12,264,318
10.0%
EXHIBIT
1989/90 APPROPRIATIONS LIMIT
ADJUSTMENT FACTORS
POPULATION
Population count provided by the
gtate Finance Department
Population percent change pursuant
to Sections 2227 and 2228 of the
Revenue and Taxation Code
UNITED STATES CONSUMER PRICE INDEX - ALL ITEMS
March, 1988
March, 1989
Change
Change converted to a percent ratio
POPULATION AND CONSUMER PRICE INDEX
CONVERTED TO AN ADJUSTMENT FACTOR
Population: 0.45~
CPi: 4.98%
Converted to a factor
Converted to a factor
Ratio of change: 1.0045 X 1.0498 =
244,209
116.5
122.3
5.8
1.0045
1.0498
0.45~
4.98%
1.0545
EXHIBIT C
1989/90 APPROPRIATIONS LIMIT
APPROPRIATIONS SUBJECT TO LIMIT CALCULATION
Total Alt Revenues
Reduce by Non-Proceeds of Taxes
Add User Fees in Excess of Costs
Add User Fees in Replacement of Taxes
Subtract Revenues Supporting
Federal Mandates (FLSA)
Subtract Debt Service Appropriations
$560,891,329
423,814,784
1,274,798
2,437,807
367,745
773,773
$137,076,545
138,351,343
140,789,150
140,421,405
$139,647,632
Total All Appropriations
Reduce by Non-Proceeds of Taxes
Subtract Debt Service Appropriations
Subtract Revenues Supportin9
Federal Mandates (FLSA)
Add User Fees in Excess of Costs
Add Appropriations for Functions
Formerly Tax Supported
Appropriations Subject to Limit
$532,155,462
423,814,784
773,773
367,745
1,274,798
2,437,807
$108,340,678
107,566,905
107,199,160
108,473,958
$110,911,765
Taxes
State Subventions
Service Charges
Permit Fees
Fines and Forfeitures
Rentals
Sales
Refunds and Reimbursements
Internal Service Charges
Federal and County Subventions
Cont r i but ions
Subtotal
EXHIBIT D
1989/90 APPROPRIATIONS LIMIT
PROCEEDS OF TAXES CALCULATION
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES
$83,133,848
13,992,215
594,560
9,073,000
28,645,562
7,900,215
3,305,000
31,951,635
253,782,060
10,208,560
67,223,436
5,972,879
28,090,448
$106,793,623 $437,079,795
TOTAL
$83,133,848
13,992,215
29,240,122
7,900,215
3,305,000
31,951,635
262,855,060
10,208,560
67,223,436
5,972,879
28,090,448
$543,873,418
Interest
Use of Fund Balance
Total
1,611,778 15,406,133
(64,723) (28,671,144)
$108,340,678
$423,814,784
17,0t7,911
(28,735,867)
$532,155,462
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~ II
n II
M
II
II
II
II
II
TEXT O1,' GANN SPENDIN(i-IJIMITATION INI'I'iA'I'iVI{
EXHIBIT F
LIMITATION OF GOVERNMENT APPROPRIATIONS. INITIATIVE CONSTITUTIONAl,
AMENDMENT. Establishes and define.~ ~nnual appropri,tion limils on sblte and lo(mi
governmental entities based on annual appropriations for prior fiscal year. Requires
adjustments for changes in east of living, population and otl~er 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 schedules within two fiscal years next following year excess
created. With exceptions, provides for reimbursement of local governments for new
programs or higher level of services mandated by state. Financial Impact:
Indeterminable.
·
ARTICLE Xlll B.
See. 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 uny entity of government in excess of that amount
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 See. 1 shall be
adjusted as follows:
(a) in the event that the financial responsibility of providi,~g 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 the appropriations Ii,nit of the transferee entity shall be increased by such
reasonable amount as the said entities shall mutually agree and the appropriations Ii,nit 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 the
financial source for the provision of services is transferred, in whole or in part, from other
revenues of an entity of government, to regulatory licenses, user charges or user fees,
then for the year of such transfer the appropriations limit of such entity of govern,nent
shall be decreased accordingly.
(c) In the event of an emergency, the appropriation limit may be exeeeded
provided that thc appropriation Ii,nits in the following three years are reduced accordingly
to prevent un aggregate increase in appropriations resulting from the emergency.
Sec. 4. The appropriations Ii,nit imposed on any new or existing entity of
govern~nent by ti{is Article ratty be established or changed by the electors of such entity,
subject to a,~d in conformity with constitutional and statutory voting requirements. The
duration of uny such change slmli be us determined by said eleetors, but shall in no event
exceed four years from the most recent vote of said electors creating or continuing such
change.
lof 3
EXHIBIT F
unemployment~ re.~erv¢: retirement.: .,.inki,~g ftys;rt, ira,it., or similar l'~qd,5 aa il 5lmll deem
reasollable and proper. Contributio,~.,; to R~V :;tl~_'h fa.nd, It'_, i!~e e~'tenl, tirol suoh
contributions are derived .from ;hc proceeds; ,'~f taxe:~, sl~al~ for purposes o! this Article
~ons~itute appropriations .~uld.~;t to limitali~,:, i~, Iht year
withcir, wals from uny s,~sh fund, nor cxpe~,ditur::.~ ,~i (o, auti~orizations to
w.,tiidrawals, sar transfers betwee;~ or among su¢:h i'umls~ shall for purposes of this ^rticlc
constitute appropriations subjset tc l~mitatio~.
See. 6. Whenever the Legislature or any stale agency mandates a new program or
hi~};c:, level of service on ~ny Io,.al g,)ver~tmcnl, the state shi;ll provide a subvention of
funds to reimburse suet~ loc:ti Eovernment for l{'.,e easts of such program or increased level
~.,f servi~.,e, except that the Legislature mey, bu'i need not, provide such ~ubvention of
funds for the following mandate.,;;
(a) Legislative mandates requested by the local agency affected;
(b) 'Legislation defining a new crime or changing an existing definition of a
crime; or
(e) l.egislative mand,tes enacted prior to January 1, 1975~ or executive orders
or regul,tions initially implementing legislatien enacted prior to January 1, 1975.
See. 7. Noticing 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.
Sec. 8. As used in this Article and except as ~therwise expressly provided herein:
(a) "Appropriations subject to l~mitation" of the state shall mean any
autl~orization to expend during a fiscal year tl{~ praceeds of taxes levied by or for the
state, exclusive of state subventions for the use and operation of local government (other
than subventions made pursuant to Section Ii of this 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 expend 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 tie restricted to, all tax revenues
and the proceeds to an entity of government, from ti) regulatory licenses, user charges,
and user fees to the extent that such proceeds exceed the costs reasonably borne by such
entity in providing the regulatior., product, or service, and (ii) the investment of tax
revenues. With respect to any local government, "proceeds of taxes" shall include
s;~bventio~m received from the state, other than purs~mal, to Section 6 of this Attic!e, and,
with respect to the state, proceeds of taxes shall exclude such subventions;
Id) "l,ocal gov¢:rnment" shall mean any eity,.eounty, city and county, sel~ool
district, special district, authority, or other political ..;ubdivision of or within the state;
(~:) "Cost o!' livi~g" ..:hall mean the Consumer Price Index for the United States
~:. reported t,y tile U:lilcd State5 I)el)artlnent ()r Labor, or successor agency or the United
5lares (Jovc~'~l~e~l; provi~le¢, I~owever, that for purposes of Section 1, thc eha~tge ir, cost
of living fr.~ tl~c preceding year slmil in ~o event ex¢;eed the eha~ge in (:alifornia per
capita personal i~co~e frown said prc¢'cdi~g year;
2of 3
EXHIBIT F
(f) "Popult~tion" of any entity of i{~v(:rilnlent, oil,er tlml~ u scl~ool district, shall
be determined by a method prescribed by ttle I,egi~lntt~re, provided that such
determination shall be revised, ns necessary, Io reflect file peri~(l~e een~u~ ~,omlueted by
tl~c United States i)epnrt~ncnt of Commerce, or succ~.s~or ngc~ey of tl~e United States
(;overnme~t. 'l'l~e Impulation of any st, hool district slmll I~t, sueli sel~ool district's avernge
daily attendance ~s determined by a ~ethod preseril)ed by tl~c l.egialaturei
(g) "Debt service" slmll mean appropriations required to pay the cost of
interest and redemption charges, including 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) Tl~e "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'S'eetion 1 and Section 3; provided, however, that the "appropriations limit"
of each entity of government for fiscal year 1978-79 shall be the total of the
appropriations subject to limitation of such entity for that fiscal year. For fiscal year
1978-79, state subventions to local governments, exclusive of federal grants, shall be
deemed to have been derived from the proceeds of state taxes.
(i) Except as otherwise provided in Section ,5, "appropriations subject to
limitation" sh~ll not include local agency loan funds or indebtedness funds, investment (or
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. "Appropriation.~ subject to limitation" for each entity of government shall
not include:
(a) Debt service.
(b) Al,propriations required for purposes of complying with mandates of the
courts or the federal government which, without discretion, require an expenditure for
additional services or wl~ieh unavoidably make the providing of existing services more
costly.
(e) Appropriations of any speeial district which existed on January 1, 1978,
and which did not as of the 1977-78 fiscal year levy an ad valorem tax on property in
excess of 12½ cents per $100 of assessed value; or the appropriations of any special
district then existing or tt~ereafter created by a vote of the people, which is totally funded
by other than the proceeds of taxes.
See. 10. 'l'l~i.~ Article shull be effective commencing with the first day of the fiscal
year following it~ adoptions.
Sec. II. If any nPi)ropri~:tion category shall be added to or re~noved from
approprialions subject to limitation, pt,'sushi to final judgment of any court of competent
jurisdiction a~d nny appeal therefrom, the npprop'riations limit shall be adjusted
accordingly. If n~,y seclion, part, clause or phrase in tl~is Article is for any reason held
invalid or ul~constitutio~nl, tl~e rem~Jining portions of tl~is Article shall not be affected but
sl',:,ll restrain in full force nnd effect.
3of 3
EXHIBIT G
i
STATE OF CALIFORNIA
GEORGE Df. UKA&r:JIAN, C~o~rnor
DEPARTMENT OF FINANCE
OFFICE OF THE DIRECTOR
May 1, 1989
PRICE AND POPULATION DATA FOR LOCAL 3URISDICTIONS
Appropriations Limit
Article XIIIB of the California Constitution specifies that appropriations made by State
and local governments ma5' increase annually by a factor comprised of the change in
population and the change in the U.S. Consumer Price Index or California per capita
income, whichever is less.
The Department of Finance is mandated to provide the requisite change data for local
jurisdictions to calculate their appropriation limits. The enclosures contain the new price
and population factors for setting your 1989-90 appropriation limit.
Enclosure I provides the price factor to be used in the calculation. Included is an example
of how to utilize the factors in calculating your new limit.
Enclosure II provides the population percent change factor for your city or county. These
are estimated pursuant to Sections 2227 and 2228 of the Revenue and Taxation Code.
Special Districts
Special districts use the population percent change factor for the city or count)' in which
the district is located. If a district is located entirely within one county, the county's
change factor is to be used. If a district is located entirely within the unincorporated
area, tho. county or the unincorporated area of the count5' population change is to be
used. if it is necessary to determine a weighted average because district boundaries
overlap several jurisdictions (two or more cities, city and county unincorporated), contact
the Demographic Research Unit, Department of Finance O16) 322-~651, for the
appropriate procedures. A special district may, no later than 21une 1, 1989, request the
Demographic Research IJnit to prepare a special district population change estimate for
the district.
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.
Article XIIIB, Section 9(c) states that special districts in existence on 3anuary 1, 1978,
which levied a tax of 12-1t2¢ or less pet' $1¢XJ assessed value on property within its
boundaries as of the 1977-78 fiscal year are permanently exempt from establishing
appropriation limits. In addition, an5' special districts in existence or created thereafter
whose sole funding source is from non-proceeds of taxes are also exempt. Therefore,
special districts which mc, et either of these two tests do not need to establish
appropriation limits.
CITY OF ANAHEIM
.L: 1989
~: INANCE DIRECTOR
EXHIBIT G
-2-
t'~ertification
Legislation was passed into law in June 1988 concerning certification (Sections 11005.6
and 30062.1 Revenue and Taxation Code, 21022 Streets and Highways Code, 38021
Vehicle Code). The legislation specified that if a Department of Finance estimate is
greater than the current certified population the Department shall file a certified cop5'
with the Controller not less than 25 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 prior 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 within 25 days of the completion of
the estimate.
The certification program does not apply to special districts.
Questions concerning population should be referred to the Demographic Research Unit at
(91/;) 322-q/;51. For questions regarding price data contact the Economic Research Unit
at (916) 322-2265. For general questions concerning determination of the appropriation
limit contact the Budget Operations Support Unit at (916)
-'~~Directo/of Binmice 7-7
Enclosures
ID ~t237
EXHIBIT C
Enclosure [
Ao
Price Factor: Section 7901 of the Government Code specifies that the percentage
change in the lesser of the March to March U.S. All Urban Consumer Price Index
(CPI) or California ~th quarter per capita personal income is to be used as an annual
percent change in determining the appropriation limit. The percent change to be
used in setting the 1989-90 limit is:
U.S. Consumer Price Index: #.98
Population Percentage Change: The attached city and county population percentage
changes were prepared pursuant to Sections 2227 and 2228 of the Revenue and
Taxation Code and are calculated as of 3anuary 1. The change from 3anuary 1, 1988
to January 1, 1989 is used in setting the lI~89-90 appropriation limit.
C. Example using the factors for the State's appropriation limit:
Price: t~.98;
Population: 2.#1;
Ratio of change:
Converted to a factor 1.0q98
Converted to a factor 1.02¢1
1.0¢98 X 1.OZt~l = 1.0751
The change factor of 7.51 is applied to the 1988-8~ appropriation limit to obtain the
1989-90 limit.
EXHIBIT G
ANNUAL PERCENT CHANGE IN POPULATION MINUS EXCLUSIONS* JANUARY 1, 1988
TO JANUARY 1, 1989 AND TOTAL POPULATION JANUARY 1, 1989.
ENCLOSURE II
DATE PRINTED
05/02/89
COUNTY
CITY
POPULATION MINUS EXCLUSIONS
ANNUAL
PERCENT CHANGE
1988 TO 1989
POPULATION
1-1-88
1-1-89
TOTAL
POPULATION
1-1-89
ORANGE
ANAHEIM
BREA
BUENA PARK
COSTA MESA
CYPRESS
FOUNTAIN VALLEY
FULLERTON
GARDEN GROVE
HUNTINGTON BEACH
IRVINE
LAGUNA BEACH
LA IIABRA
LA PALMA
LOS ALAMITOS
NEWPORT BEAClt
ORANGE
PLACENTIA
SAN CLEMENTE
SAN JUAN CAPISTRANO
SANTA ANA
SEAL BEACH
STANTON
TUSTIN
VILLA PARK
WESTMINISTER
YORBA LINDA
UNINCORPORATED
ORANGE COUNTY
0 45
2 51
-0 04
1 03
4 63
0 71
0 96
0 29
0 43
2 60
1 23
0 34
0 10
0 47
0 54
1 29
1 26
4 18
0 43
2 47
0 13
0 12
2.38
0.58
-0.66
3.97
5.58
243,206
32,718
66,236
90,918
43,351
55,749
110,684
134,408
187,900
97,913
24,268
48,837
16,090
11,181
69,551
105,008
41,122
37,534
24,409
231,625
26,456
28,319
41,014
6,907
73,824
46,085
330,139
244,309
33,538
66,207
91,857
45,360
56,145
111,749
134,801
188,701
100,461
24,566
49,005
16,106
11,234
69,927
106,358
41,639
39,103
24,513
237,348
26,490
28,353
41,991
6,947
73,338
47,914
348,571
244,309
33,538
66,207
92,893
45,360
56,145
111,749
134,801
188,701
100,461
24,566
49,005
16,106
12,171
69,927
106,358
41,639
39,103
24,513
237,348
27,364
28,353
46,782
6,947
73,338
47,914
354,807
1.85 2,225,452 2,266,531 2,280,405
EXCLUSIONS INCLUDE STATE MENTAL INSTITUTIONS, FEDERAL MILITARY BASES AND STATE
AND FEDERAL PRISONS.
C!TY OF ANAHEIM
PAGE 1
± 1987
FINANCE DIRECTOR