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2018-27 RESOLUTION NO. 2018-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018-19 WHEREAS, Article XI11B of the California Constitution and Section 7910 of the California Government Code require that each year the City of Grand Terrace shall by resolution, establish an Appropriations Limit for the fiscal year; and WHEREAS, the City Council has prepared a Proposed Budget for Fiscal Year 2018-19, a copy of which is on file in the Office of the City Clerk and available for public inspection, and WHEREAS, the said Proposed Budget contains the estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the City's Finance Department has prepared calculations and documentation required for and to be used in the determination of certain matters and for the establishment of an Appropriations Limit for the City for Fiscal Year 2018-19; and WHEREAS, the City Council has considered pertinent data such as price and population factors and made such determinations as may be required by law, and has adopted this Resolution as a regularly scheduled meeting of the City Council: and WHEREAS, the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2018-19 is hereby established at$13,993,395 and the total annual appropriations subject to such limitation for Fiscal Year 2018-19 are determined to be $4,026,293. NOW, THEREFORE,THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That $13,993,395 is hereby established as the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2018-19. 2. The City Council hereby adopts the findings and methods of calculation set forth in Exhibit A (Appropriations Limit Calculation) and Exhibit B (Proceeds of Tax Calculation). 3. The City of Grand Terrace reserves the right to revise the factors associated with the calculation of the limit established pursuant to Article XI11B of the California Constitution if such changes or revisions would result in a more advantageous Appropriations Limit in the future. 2018-27 CC Reso Page 1 of 2 June 26, 2018 BE IT FURTHER RESOLVED that this Resolution shall take effect immediately up the date of its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 26th day of June 2018. D cN e, Mayor ATTEST: r Debra L. Thomas, City Clerk APPROVED AS TO FORM: Richard L. Adams, II City Attorney 2018-27 CC Reso Page 2 of 2 June 26, 2018 EXHIBIT A CITY OF GRAND TERRACE APPROPRIATIONS(GANN) LIMIT CALCULATION FISCAL YEAR 2018-19 APPROPRIATIONS SUBJECT TO THE LIMIT FY 2018-19 Total Revenue" $ 7,308,864 Less Non-Proceeds of Tax 3,282,571 A) Total Appropriations Subject to the Limit $ 4,026,293 APPROPRIATIONS LIMIT B) FY 2017-18 Appropriations Limit 13,376,728 C) Change Factor" % Increase Factor Cost of Living Adjustment 3.67 1.0367 Population Adjustment 0.91 1.0091 Change Factor(1.0369 x 1.0116) 1.0461 D) Increase(decrease)in Appropriations Limit $ 616,667 E) FY 2018-19 Appropriations Limit(B x C) $ 13,993,395 REMAINING APPROPRIATIONS CAPACITY (E-A) $ 9,967,102 Remaining Capacity as Percent of the FY 2018-19 Appropriations Limit 71.23% "Revenues are based on FY 2018-19 Proposed Budget(all City funds excluding Successor Agency). State Department of Finance Percent of Change in California Per Capita Income Percent of Change in County of San Bernardino Population EXHIBIT B CITY OF GRAND TERRACE APPROPRIATIONS(GANN) LIMIT PROCEEDS OF TAX CALCULATION FISCAL YEAR 2018-19 BUDGETED BUDGETED PROCEEDS NON-PROCEEDS TOTAL REVENUE SOURCE OF TAX OF TAX REVENUE TAXES Property Tax(1) $ 3,149,440 $ 3,149,440 Sales Tax(2) 770,000 770,000 Business License Tax 91,000 91,000 FEES Franchise Fees $ 524,300 524,300 Building Fees 127,000 127,000 Planning Fees 164,000 164,000 Other Permits/Fees 504,888 504,888 Intergovernmental 415,660 415,660 Use of Money& Property 323,000 323,000 Child Care Fees - - Gas Tax/Highway User Fees 519,800 519,800 Measure"I"Transportation 193,000 193.000 SLESF(AB 3229 COPS) 100,050 100.050 CDBG 47,876 47,876 Other 165,800 165,800 OPERATING BUDGET SUBTOTAL $ 4,010,440 $ 3,085,374 $ 7,095,814 %of Total 56.52% 43.48% 100.001 e Interest Allocation (3) 15,853 12,197 28,050 CAPITAL PROJECT FUNDING Gas Tax/Measure"I"Transfers 185,000 185,000 State Grants - - Bond Proceeds - - CAPITAL PROJECT SUBTOTAL $ - $ 185,000 $ 185,000 TOTAL $ 4,026,293 $ 3,282,571 $ 7,308,864 Revenues are based on FY 2018-19 Proposed Budget(all City funds excluding Successor Agency). Notes: (1) Includes Property Tax In-Lieu of Vehicle License Fees&RPTTF Residual Receipts (2) Includes Property Tax In-Lieu of Sales Tax (3) Based on percentage of Tax/Non-Tax Proceeds �p7 6p 6 1 Z W III A o fi DEPARTMENT OF EomUNo G. BROWN JR. - GOVERNOR F1 N AN G E DTATC CAPITOL■ROOM 1 145■IMACNAMCNTC CA■9601 a-A99ft M www.00r.CA.00V 01-r10E OF Ta1E DIRECTOR May 2018 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2018, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2018-19. Attachment A 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 2018-19 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C. provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website:httg:llleginfo.legislature.ca.govlfaces/codes.xhtml. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits, Population Certification The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1, 2018. Please Note; The prior year's city population estimates may be revised. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. MICHAEL COHEN Director By: AMY M. COSTA Chief Deputy Director Attachment May 2018 Attachment A 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. 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 change to be used in setting the fiscal year 2018-19 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2018-19 3.67 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2018-19 appropriation limit. 2018-19: Per Capita Cost of Living Change= 3.67 percent Population Change=0.78 percent Per Capita Cost of Living converted to a ratio: 3.67 + 100 = 1.0367 100 Population converted to a ratio: 0.78+ 100 = 1,0078 100 Calculation of factor for FY 2018-19: 1.0367 x 1 Z078= 1.0448 Fiscal Year 2018-19 Attachment 8 Annual Percent Change In Population Minus Exclusions" January 1,2017 to January 1,2018 and Total Population,January 1,2018 MAL County Percent Charms --- Population Minus Exclusions --- Population City 2017-2018 1-1-17 1-1-18 1-1-2018 San Bernardino Adelanto -0.01 34,599 34.597 35,293 Apple Valley 0.87 73,349 73.984 73,984 Barstow 0.42 23,917 24,018 24,411 Big Bear Lake 2.00 5,404 5.512 5,512 Chino 0.96 50,737 81.511 86,757 Chino Hills 4.61 79,498 83,159 83,159 Colton 0.45 53.482 53,724 53,724 Fontana 0.92 210.071 212.000 212,000 Grand Terrace 0.26 12.492 12.524 12,524 Hesperia 1.32 93.590 94.829 94.829 Highland 110 54,167 54.761 54.761 Lome Linda 0.24 23,805 23,862 23.946 Montclair 0.80 39.012 39,326 39,326 Needles -0.12 5.183 5,177 5,177 Ontario 1.39 175,157 177,589 177,589 Rancho Cucamonga 0.79 175,282 176.671 176,671 Redlands 0.49 70,851 71,196 71,196 Rialto 055 106,455 107.041 107,041 San Bernardino 0.48 218.543 219.590 221,130 Twentynine Palms 313 17,746 18.301 27.046 Upland 010 76.937 77.017 77,017 Victorville -0.20 120.214 119.971 123,701 Yucaipa 0.61 54.317 54 651 54.651 Yucca Valley 0.38 21.752 21,834 21.834 Unincorporated 1.02 300,728 303.791 311.559 County Total 091 2.127.288 2.146,636 2.174,938 'Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional Institutions and veteran homes. STATE OF CALIFORNIA } COUNTY OF SAN BERNARDINO CITY OF GRAND TERRACE I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2018-27 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 26th day of June 2018, and that the same was passed and adopted by the following vote: AYES: Council Members Wilson, Hussey, Henderson; Mayor Pro Tern Robles; Mayor McNaboe NOES: None. ABSENT: None. ABSTAIN: None. Executed this 271h day of June 2018, at Grand Terrace, California. De ra L. Thomas City Clerk [SEAL]