2000/06/13 City Council Resolution (2)RESOLUTION NO. 2000- 118
RESOLUTION OF THE COUNCIL OF THE CITY OF ROHNERT PARK
ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE
CITY OF ROHNERT PARK FOR THE 2000 -01 FISCAL YEAR
PURSUANT TO ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION
WHEREAS, Article XIII B of the California Constitution (Proposition
4) provides for an annual appropriations limit for state and local
governments beginning with the 1980 -81 fiscal year, based on the 1978 -79
appropriations, as adjusted for the changes in the cost of living or per
capita personal income, population, and other specified factors; and
WHEREAS, implementing legislation, which became effective January 1,
1981, provides that each year the governing body of each local
jurisdiction shall, by resolution, establish its appropriations limit for
the year pursuant to Article III B at a regularly scheduled meeting or
noticed special meeting.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Rohnert
Park that
1. For fiscal year 2000 -01, the City of Rohnert Park hereby (a)
elects the change in the California Per Capita Income for calculating the
inflation factor, and (b) elects the change in the County's population for
calculating the population factor, necessary to determine the City's
appropriation limit.
2. For fiscal year 2000 -01, the total annual appropriations subject
to limitation are $11,717,450 and the appropriations limit is $27,527,244.
DULY AND REGULARLY ADOPTED this 13th day of June, 2000.
ATTEST
D ut C t letA
CITY OF ROHNERT PARK
FLORES: AYE MACKENZIE: AYE REILLY: AYE SPIRO: AYE VIDAK- MARTINEZ: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
INTER - OFFICE MEMORANDUM
TO: Joseph D. Netter
City Manager
RE: Proposition 4
Appropriation Limit for the
Fiscal Year 2000 -01
FROM:
Michael L. Harrow
Finance Director
DATE: May 22, 2000
As you are aware, by the passage of Proposition 4, Article XIII
B was added to the Constitution of the State of California, which
thereby limits state and local government spending. In general, the
article limits annual appropriations of the City to the level of
appropriations for the 1978 -79 base year, adjusted for changes in the
cost of living, population, and other specified factors. Article
XIIIB became effective the first day of the fiscal year following its
adoption, i.e. July 1, 1980.
For the City of Rohnert Park, the base year (1978 -79)
calculations of appropriations subject to limitation is determined to
be $4,218,884, which includes all funds. This amount was derived
pursuant to a 1989 court decision (Santa Barbara County Taxpayers V.
Board of Supervisors) where it was held that franchise fees do not
fall within the definition of "proceeds of taxes ". This new base
year appropriation limit is subsequently adjusted by the following:
1. Changes in
Cost of Living- Lesser of:
a. CPI (revised May 1981
b. State Per Capita
Personal Income Change
1. Changes in
Cost of Living- Lesser of:
a. CPI (revised May 1981
b. State Per Capita
Personal Income Change
1. Changes in
PRICE CHANGES
1978 -79 1979 -80 1980 -81 1981 -82
- - - - - -- - - - - - -- - - - - - -- - - - - - --
10.17% 14.68% - - -- 6.790-6
12.42% 12.11% 9.12% - - --
1982 -83 1983 -84 1984 -85 1985 -86
- - - - - -- - - - - - -- - - - - - -- - - - - - --
- - -- 4.74% 3.74% 2.13%
2.35% - - -- - - -- - - --
1986 -87 1987 -88 1988 -89 1989 -90
- - - - - -- - - - - - -- - - - - - -- - - - - - --
Cost of Living- Lesser of:
a. CPI (revised May 1981
b. State Per Capita
Personal Income Change
1. Changes in
Cost of Living- Lesser of:
a. Personal Income Change
b. Inc. in non - residential
assess. val. due to new
construction
1. Changes in
Cost of Living- Lesser of:
a. Personal Income Change
b. Inc. in non - residential
assess. val. due to new
construction
3.04% 3.93% 4.98% 4.21%
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95
- - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - --
4.14% (0.64)% 2.72% 0.71% 4.72%
- - -- - - - - -- - - - - -- - - - - -- - - - - --
1995-96 1997 -98 1998 -99 1999 -00 2000 -01
- - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - --
4.67% 4.67% 4.15% 4.53% 4.91%
POPULATION CHANGES
1978 -79 1979 -80 1980 -81 1981 -82
- - - - - -- - - - - - -- - - - - - -- - - - - - --
2. Changes in Population (Per
State Dept. of Finance) 11.08% 10.88% 6.70% 5.08%
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95
- - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - --
2. Changes in Population (Per
State Dept. of Finance) 3.11% 3.18% 2.43% 1.99% 2.22%
(County) (City) (County) (County) (County)
1995 -96 1997 -98 1998 -99 1999 -00 2000 -01
2. Changes in Population (Per
State Dept. of Finance) 1.48% 1.20 1.98 1.62 1.39
(City) (County) (County) (County) (County)
The approved appropriations limit for the fiscal year 1999 -00
Prop4 Memo
1982 -83
- - - - - --
1983 -84
- - - - - --
1984 -85
- - - - - --
1985 -86
- - - - - --
2. Changes in
Population (Per
State Dept.
of Finance)
2.93%
4.17%
4.18%
5.32%
1986 -87
- - - - - --
1987 -88
- - - - - --
1988 -89
- --
1989 -90
2. Changes in
Population (Per
n
State Dept.
of Finance)
5.84%
1.95%
3.31%
5.33%
(County)
(City)
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95
- - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - --
2. Changes in Population (Per
State Dept. of Finance) 3.11% 3.18% 2.43% 1.99% 2.22%
(County) (City) (County) (County) (County)
1995 -96 1997 -98 1998 -99 1999 -00 2000 -01
2. Changes in Population (Per
State Dept. of Finance) 1.48% 1.20 1.98 1.62 1.39
(City) (County) (County) (County) (County)
The approved appropriations limit for the fiscal year 1999 -00
Prop4 Memo
was $25,254,007. To calculate the new appropriation limit for the
fiscal year 2000 -01, you need to apply the 4.91% increase in the
California Per Capita Income and the 1.39% change in population (for
the County this year) to the 1999 -00 limit. Therefore, the adjustment
to the 2000 -01 appropriation limit represents a 9.00149% increase.
The "appropriations subject to limitation" for the fiscal year 2000-
01 is calculated to be $27,527,244.
Article XIII B of the California Constitution lacks specific
procedures for the annual adoption of the appropriation limit.
However, SB 1352 (Marks) adds revenue and taxation code 7910 which
requires the City to establish its appropriation limit by resolution
each year at a regularly scheduled meeting or a noticed special
meeting. The law does not provide for a specific calendar date for
the adoption of the resolution.
Attached to this memorandum is the resolution to be adopted at
the June 13, 2000 City Council meeting. In this resolution, the
appropriation limit of $27,527,244 has been calculated. All
supporting documentation used in the calculation of the appropriation
limit for the fiscal year 2000 -01 is also attached for your review,
and has been available for public inspection since May 22,2000.
The appropriation limits only apply to appropriations financed
from the "proceeds of taxes" which the initiative defines as:
1. All tax revenues (excluding Gas Tax and Transportation
Development Act Funds); and
2. Any proceeds from the investment of tax revenues; and
3. Any revenues from a regulatory license fee, user charge or
user fee that exceeds the amount needed to cover the
reasonable cost of providing the regulation, product or
service.
The initiative would not restrict the growth in appropriations
financed from other sources of revenues, including federal funds,
bond funds, traffic fines, user fees based on reasonable costs and
other gift incomes.
The appropriation limit may be changed by one of the following
ways:
1. The voters may temporarily vote to change the appropriations
limit. The change may not exceed four years unless the voters
renew the change. Also, it takes a majority vote for the
approval.
2. In the event of an emergency, the appropriation limit may be
exceeded for one year. If the appropriation limit is exceeded
Prop4 Memo
due to an emergency, the limit in the following three years
would be reduced by an amount sufficient to recoup the excess
appropriation.
3. If the financial responsibility for providing a program or
service is transferred from the City from another governmental
entity, the appropriation limit of both jurisdictions may be
adjusted by a reasonable amount that is mutually agreed upon.
Any increase in one entity's limit would have to be offset by
an equal decrease in the other entity's limit.
4. If the City transfers the financial responsibility for
providing a program or service to a private entity, or a
source of funds used to support an existing program or service
is shifted from "proceeds of taxes" to a regulatory license
fee, or user fee, the City's appropriation limit must be
reduced accordingly.
If, in any fiscal year, the City were to receive or have in
excess of the amount that it appropriates for that year, it would be
required to return the excess to taxpayers within the next two fiscal
years. The initiative specifies that these funds are to be returned
by lowering tax rates or fee schedules.
The "proceeds of taxes ", for the fiscal year ending June 30,
2001 for the City of Rohnert Park, is estimated to be $11,717,450
which is well below the appropriations subject to limitation
($27,527,244) for the same year. This gap between the "proceeds of
taxes" and the appropriation subject to limitations assures the City
of not being put into-a posture of returning tax monies to the
taxpayers or having to initiate other procedures as outlined above.
It is projected that the City of Rohnert Park will be able to
grow and provide services without an immediate concern of reaching
its appropriation limit.
If you
documentation
Proposition 4
me know.
Prop4 Memo
have any questions on the attached worksheets and /or
used in the calculations or would like to discuss
in general, its effect long or short -term, please let
CITY OF ROHNERT PARK
Estimated Proceeds of Taxes
Fiscal Year 2000 -01
Proceeds of Taxes Category Amount
------- - - - - --
--------------------------
Property Taxes - Secured $1,985,000
Property Taxes - Unsecured 55,000
Homeowner's Property Tax Relief 50,000
Real Property Transfer Tax 250,000
Transient Occupancy Tax 1,300,000
Sales and Use Tax 5,800,000
Franchise - P.G.& E. 0
Franchise - Century Cable TV 0
Interest @ 25% of Total 406,750
State Motor Vehicle License Fees 1,870,000
Off Highway Motor Vehicles 700
State Trailer Coach Fees 0
State Cigarette Taxes 0
Total Proceeds of Taxes 1999 -00 $11,717,450
* Pursuant to a 1989 court decision (Santa Barbara Taxpayers
V. Board of Supervisors), it was held that franchise fees do not
fall within the definition of. "proceeds of taxes ".
Proc_tax
*
*
CITY OF ROHNERT PARK
Proposition 4 Appropriation Limit
Fiscal Year 2000 -01
Base Year (1978 -79) Appropriations $4,218,884
Subject to Limit
Change in Cost of Living (1978 -79)
CPI Revised 10.17 1.1017
State Per Capita Income 12.42 -------- - - - - --
$4,647,945
Change in Population (1978 -79)
Per State Dept. of Finance 11.08 1.1108
-------- - - - - --
Appropriation Limit 1979 -80 Revised $5,162,937
Change in Cost of Living (1979 -80)
CPI 14.68
State Per Capita Income 12.11 1.1211
-------- - - - - --
$5,788,169
Change in Population (1979 -80)
Per State Dept. of Fin. (Rev) 10.88 1.1088
-------- - - - - --
Appropriation Limit 1980 -81 Revised $6,417,922
-------- - - - - --
--------------
Change in Cost of Living (1980 -81)
CPI - --
State Per Capita Income 9.12 1.0912
-------- - - - - --
$7,003,236
Change in Population (1980 -81)
Per State Dept. of Finance 6.70 1.0670
-------- - - - - --
Appropriation Limit 1981 -82 $7,472,453
-------- - - - - --
--------------
Change in Cost of Living (1981 -82)
CPI 6.79 1.0679
-------- - - - - --
$7,979,833
Prop4_Appr_Limit
Change in Population (1981 -82)
Per State Dept. of Finance 5.08 1.0508
Appropriation Limit 1982 -83 $8,385,209
Change in Cost of Living (1982 -83)
State Per Capita Income
2.35
1.0235
$8,582,261
Change in Population (1982 -83)
Per State Dept. of Finance
2.93
1.0293
-------- - - - - --
Appropriation Limit 1983 -84
$8,833,721
-------- - - - - --
--------------
Change in Cost of Living (1983 -84)
CPI
4.74
1.0474
-------- - - - - --
$9,252,439
Change in Population (1983 -84)
Per State Dept. of Finance
4.17
1.0417
-------- - - - - --
Appropriation Limit 1984 -85
$9,638,266
-------- - - - - --
--------------
Change in Cost of Living (1984 -85)
CPI
3.74
1.0374
-------- - - - - --
$9,998,737
Change in Population (1984 -85)
Per State Dept. of Finance
4.18
1.0418
-------- - - - - --
Appropriation Limit 1985 -86
$10,416,684
-------- - - - - --
--------------
Change in Cost of Living (1985 -86)
CPI
2.13
1.0213
$10,638,559
Change in Population (1985 -86)
Per State Dept. of Finance
5.32
1.0532
-------- - - - - --
Appropriation Limit 1986 -87
$11,204,530
MEMOMM
Change in Cost of Living (1986 -87)
CPI
Change in Population (1986 -87)
Per State Dept. of Finance
Appropriation Limit 1987 -88
Change in Cost of Living (1987 -88)
CPI
Change in Population (1987 -88)
Per State Dept. of Finance
Appropriation Limit 1988 -89
Change in Cost of Living (1988 -89)
CPI
Change in Population (1988 -89)
Per State Dept. of Finance
Appropriation Limit 1989 -90
Change in Cost of Living (1989 -90)
CPI
Change in Population (1989 -90)
Per State Dept. of Finance
Appropriation Limit 1990 -91
Change in Cost of Living (1990 -91)
CPI
Prop4_Appr_Limit
3.04 1.0304
-------- - - - - --
$11,545,148
5.84 1.0584
-------- - - - - --
$12,219,385
-------- - - - - --
--------------
3.93 1.0393
-------- - - - - --
$12,699,607
3.33 1.0333
-------- - - - - --
$13,122,503
-------- - - - - --
--------------
4.98 1.0498
-------- - - - - --
$13,776,004
3.31 1.0331
-------- - - - - --
$14,231,990
-------- - - - - --
--------------
4.21 1.0421
-------- - - - - --
$14,831,157
5.33 1.0533
$15,621,657
-------- - - - - --
--------------
4.14 1.0414
-------- - - - - --
$16,268,394
Change in Population (1990 -91)
Per State Dept. of Finance 3.11 1.0311
(used County change) ---- ---- - - - - --
Appropriation Limit 1991 -92 $16,774,341
-------- - - - - --
--------------
Change in Cost of Living (1991 -92)
Per Capita Income
-0.64
0.9936
- - - - --
--------
$16,666,985
Change in Population (1991 -92)
Per State Dept. of Finance
3.18
1.0318
(used City change)
-------- - - - - --
Appropriation Limit 1992 -93
$17,196,995
-------- - - - - --
--------------
Change in Cost of Living (1992 -93)
Per Capita Income
2.72
1.0272
$17,664,754
Change in Population (1992 -93)
Per State Dept. of Finance
2.43
1.0243
(used County change)
- ------- - - - ---
Appropriation Limit 1993 -94
$18,094,007
-------- - - - - --
--------------
Change in Cost of Living (1993 -94)
Per Capita Income
0.71
1.0071
- - - - --
--------
$18,222,474
Change in Population (1993 -94)
Per State Dept. of Finance
1.99
1.0199
(used County change)
--------------
Appropriation Limit 1994 -95
$18,585,102
-------- - - - - --
Change in Cost of Living (1994 -95)
Per Capita Income
4.72
1.0472
- - - - --
--------
$19,462,319
Change in Population (1994 -95)
Per State Dept. of Finance
2.22
1.0222 **
(used County change)
-------- -- - - --
Appropriation Limit 1995 -96
$19,894,382
-------- - - - - --
--------------
• �* • 1
Change in Cost of Living (1995 -96)
Per Capita Income
Change in Population (1995 -96)
Per State Dept. of Finance
(used City change)
Appropriation Limit 1996 -97
Change in Cost of Living (1996 -97)
Per Capita Income
Change in Population (1996 -97)
Per State Dept. of Finance
(used County change)
Appropriation Limit 1997 -98
Change in Cost of Living (1997 -98)
Per Capita Income
Change in Population (1997 -98)
Per State Dept. of Finance
(used County change)
Appropriation Limit 1998 -99
Change in Cost of Living (1998 -99)
Per Capita Income
Change in Population (1998 -99)
Per State Dept. of Finance
(used County change)
Appropriation Limit 1999 -00
Change in Cost of Living (1999 -00)
Per Capita Income
4.67 1.0467
-------- - - - - --
$20,823,450
1.48 1.0148 **
-------- - - - - --
$21,131,637
-------- - - - - --
--------------
4.67 1.0467
-------- - - - - --
$22,118,484
1.2 1.012 **
-------- - - - - --
$22,383,906
-------- - - - - --
--------------
4.15 1.0415
-------- - - - - --
$23,312,838
1.98 1.0198 **
$23,774,432
-------- - - - - --
--------------
4.53 1.0453
-------- - - - - --
$24,851,414
1.62 1.0162 **
-------- - - - - --
$25,254,007
-------- - - - - --
--------------
4.91 1.0491
-------- - - - - --
$26,493,979
Change in Population (1999 -00)
Per State Dept. of Finance 1.39 1.039
(used County change) -------- - - - - --
Appropriation Limit 2000 -01 $27,527,244
* Base year appropriation limit was recalculated because
of the 1989 court decision (Santa Barbara County Taxpayers
v. Board of Supervisors) which held that franchise fees do
not fall within the definition of "proceeds of taxes" and
hence such fees need not be included as funds subject to the
Gann limit. Each years' appropriation limit is affected by
this change.
** Method of calculation of limit changed effective 1/1/91.
Now, population change is either the City's or the County's,
whichever is higher. City has the option to go back to 1986 -87.
This year the County population change was used in the calculation.
Prop4_Appr_Limit
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA)
) ss
COUNTY OF SONOMA )
Dawn Cerini, being first duly sworn, deposes and says:
That she is, and during all times herein mentioned was, the duly
acting and qualified Account Clerk of the City of Rohnert Park, Sonoma
County, California; and that on the 22nd day of May, 2000 she posted full,
true and correct copies of Public Notice - Appropriations Limit for the
City of Rohnert Park for the 2000 -01 Fiscal Year Pursuant to Article III B
of the California Constitution in three public places in said city, to
wit.
City Offices, 6750 Commerce Boulevard
City Offices Annex, 6800 Hunter Drive
Suite B
Rohnert Park Community Center
5401 Snyder Lane
awn Ceri i
Prop4 Affidavit
CITY OF ROHNERT PARK
6750 Commerce Boulevard
Rohnert Park, California 94928
Telephone (707) 588 -2226
PUBLIC NOTICE
Appropriation Limit for the City of Rohnert Park for the 2000 -01 Fiscal
Year Pursuant to Article III B of the California Constitution
NOTICE IS HEREBY GIVEN that the City of Rohnert Park has calculated
its annual appropriation limit for the 2000 -01 fiscal year, based on 1978-
79 appropriations, as adjusted for changes in the cost of living or per
capita income, population and other specific factors for the subsequent
years of 1979 -80 through 1999 -00. The appropriations limit for the City
of Rohnert Park for the fiscal year 2000 -01 is calculated to be
$27,527,244.
Documentation used in the calculation of the appropriations limit is
available for public inspection Monday through Friday at the City
Manager's office, 6750 Commerce Boulevard, Rohnert Park, CA 94928,
between 8:00 a.m. and 5:00 p.m.
Michael L. Harrow
Finance Director
City Treasurer
Dated: May 22, 2000
Prop4 Notice
GRAY DAVIS, Governor
STATE OF CALIFORNIA
DEPARTMENT OF FINANCE
OFFICE OF THE DIRECTOR
STATE CAPITOL, ROOM 1145
SACRAMENTO, CA 958144998
May 18, 2000
Dear Fiscal Officer:
PRICE AND POPULATION INFORMATION
APPROPRIATIONS LIMIT
The California Revenue and Taxation Code, Section 2227, mandates the Department of Finance to transmit
an estimate of the percentage change in population to local governments. Each local jurisdiction uses their
percentage change in population factor for January 1, 2000, in conjunction with a change in the cost of living,
or price factor, to calculate their appropriations limit for fiscal year 2000 -2001. Enclosure I provides the
change in California's per capita personal income and an example for utilizing the price factor and population
percentage change factor to calculate the 2000 -2001 appropriations limit. Enclosure R provides city and
unincorporated county population percentage changes, and Enclosure HA provides county and incorporated
areas population percentage changes. The population percentage change data excludes federal and state
institutionalized populations and military populations, as noted.
POPULATION PERCENTAGE CHANGE FOR SPECIAL DISTRICTS
Some special districts must establish an annual appropriations limit. Consult the Revenue and Taxation
Code, Section 2228, for the various population options available to special districts to assess population
change in their district. Article XIII B, Section 9 of the State Constitution exempts certaim special districts
from the appropriations limit calculation mandate. Special districts required by law to calculate their
appropriations limit must present the calculation as part of their annual audit. No State agency reviews the
appropriations limit.
POPULATION CERTIFICATION
The population certification program applies only to cities and counties. Revenue and Taxation Code 11005.6
mandates the Department of Finance to automatically certify any population estimate that exceeds the current
certified populationwith the State Controller's Office. The Department of Finance will certify the higher
estimate to the Controller by June 1, 2000.
Address questions about the price and population data to the Demographic Research Unit at (916) 323 -4086.
Sincerely,
B. TIMOTHY GAGE
Director
Enclosure
May 18, 2000
Enclosure I
A. Price Factor: Article XUI B specifies that local jurisdictions select their
cost -of -living factor to compute their appropriation limit by a vote of their
governing body. The cost of living factor provided here is per capita personal
income. If the percentage change in per capita personal income is selected, the
percentage changes to be used in setting the 2000 -2001 appropriation limit are:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2000 -2001 4.91
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a
1999 -2000 appropriations limit.
2000 -2001:
Per Capita Change = 4.91 percent
Population Change= 1.73 percent
Per Capita converted to a ratio:
Population converted to a ratio:
4.91 + 100 = 1.0491
100
1.73+100 = 1.0173
100
Calculation of factor for FY 2000 -2001: 1.0491 x 1.0173 = 1.0672
6 ` g
Enclosure II
Annual Percent Change in Population Minus Exclusions ( *)
January 1, 1999 to January 1 , 2000 and Total Population January 1, 2000
Total
County Percent Change -- Population Minus Exclusions -- Population
City 1999 -2000 1 -1 -99 1 -1-00 1 -1 -2000
SONOMA
CLOVERDALE
5.46
6,084
6,416
6,416
COTATI
0.25
6,797
6,814
6,814
HEALDSBURG
4.06
10,023
10,430
10,430
PETALUMA
2.49
51,698
52,985
52,985
ROHNERT PARK
0.26
40,055
39,952 w
�- 39,952
SANTA R SA
2.28
138,823
141,989
141,989
SEBASTOPOL
1.35
7,912
8,019
8,019
SONOMA
1.28
9,287
9,406
9,406
WINDSOR
3.07
20,407
21,034
.21,034
UNINCORPORATED
0.13
151,889
152,083
153,012
COUNTY TOTAL 1.39 442,975 449,128 450,057
6 e.;
( *) Exclusions include residents in state mental institutions, federal military installations, and state and federal correctional institutions.
Page 1