HomeMy WebLinkAbout17. Annual Appropriations Limit
AGENDA MEMO
DATE:
June 28, 2011
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: John Michicoff, Director of Finance
SUBJECT: STATE CONSTITUTION ARTICLE XIII-B
APPROPRIATIONS LIMIT
RECOMMENDATION
That the City Council adopt the attached Resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING
AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2011-
2012.
DISCUSSION
In accordance with Article XIII-B of the State Constitution, and using data furnished by
the State Department of Finance and the Los Angeles County Assessor, the
appropriations limit for Fiscal Year 2011-2012 has been calculated.
The calculations as shown in Exhibit 1, are computed by adjusting the appropriations
limit for Fiscal Year 2010-2011 for the percentage change in either California’s per
capita personal income (2.51%) or the City’s total assessed valuation due to new non-
residential construction (-1.24%); and the percentage change in population of either the
County of Los Angeles (0.38%) or the City (0.23%). Since the percentage change in
California’s per capital personal income and the percentage change in the population of
the County of Los Angeles will provide greater benefit to the City, these factors have
been selected to compute the 2011-2012 appropriations limit. Using these factors, the
appropriations limit for 2011-2012 is $122,202,040, which basically means that certain
aspects of the budget cannot exceed this amount. The proposed budget, currently
under consideration, has appropriations subject to this limit of $45,235,906.
FISCAL IMPACT
There is no fiscal impact associated with adopting this resolution.
S:\Agenda Memos CC 2011\06-28-11\11-12 Appropriations Limit.doc
CITY OF DOWNEY, CALIFORNIA
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DOWNEY APPROVING AND ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2011-2012.
WHEREAS, the voters of California on November 6, 1979 added Article XIII-B to the
State Constitution placing various limitations on the appropriations of the State and local
governments; and
WHEREAS, Proposition 111, which modifies the appropriations limit, was passed on the
June 5, 1990 ballot; and
WHEREAS, Article XIII-B provides that the appropriations limit for the fiscal year 2011-
12 is calculated by adjusting the appropriations limit for fiscal year 2010-11 for the percentage
changes in California’s per capita personal income or City’s total assessed valuation due to new
non-residential construction; and the percentage changes in the County’s or City’s population;
and
WHEREAS, the factors may be selected by annual elections of the City Council; and
WHEREAS, the City Council of the City of Downey elects the percentage change in
California’s per capita personal incomeand the percentage change in population of the County
of Los Angeles to calculate the appropriations limit for fiscal year 2011-12; and
WHEREAS, the information necessary for making these adjustments is attached in
Exhibit 1; and
WHEREAS, the City of Downey has complied with all of the provisions of Article XIII-B in
determining the appropriations limit for fiscal year 2011-12
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVE, AS FOLLOWS:
Section 1. The appropriation limit for 2011-12 shall be $122,202,040 for the City of
Downey as calculated in Exhibit 1.
Section 2. The appropriations subject to the limit contained in the 2011-12 Budget are
$45,235,906.
Section 3. The City Clerk shall certify to the passage and adoption of this Resolution
and shall enter same in the book of original resolutions of said City.
Approved and adopted this 28th day of June, 2011.
LUIS H. MARQUEZ, Mayor
ATTEST:
JOYCE E. DOYLE, Interim City Clerk
RESOLUTION NO. _____
PAGE TWO
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council
of the City of Downey at a regular meeting hereof, held on the 28th day of June, 2011, by the
following vote, to wit:
AYES: Council Members
NOES: Council Members
ABSTAINED: Council Members
ABSENT: Council Members
JOYCE E. DOYLE, Interim City Clerk
RESOLUTION NO. _______
Exhibit 1
Calculation 2011-2012 Appropriations Limit
2010-2011 Appropriations Limit$118,758,056
Cost of Living Factor based on percentage change in per 2.51%
capita personal income in California
Population Factor based on percentage change in the 0.38%
population of the County of Los Angeles
Combined Factor 1.029
2011-2012 Appropriations Limit $122,202,040