AGENDA REPORT. SAN CLEMENTE CITY COUNCIL MEETING Meeting Date: June 16, 2015 ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016.

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1 AGENDA REPORT SAN CLEMENTE CITY COUNCIL MEETING Meeting Date: June 16, 2015 Agenda Item b-0 Approvals: City Manager ~ Dept. Head ij. " Attorney =---- Financ"&Jil' Department: Prepared By: Subject: Finance & Administrative Services Judi Vincent, Finance Manager9'" ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR Fiscal Impact: None. Summary: Background: Discussion: Article XIII B of the California Constitution requires that cities annually establish an appropriations limit by formal resolution of the governing body. Article XIII B further specifies that the appropriations limit may increase annually by a factor comprised of the changes in population for the City, or the County, combined with either the change in California per capita personal income or the change in the local assessment roll due to nonresidential construction. The State Department of Finance transmits an estimate of the percentage change in population to local governments annually, per California Revenue and Taxation Code, section This information is utilized by the City of San Clemente to establish the appropriations limit for the 2016 fiscal year budget, along with the change in California per capita personal income, also provided by the State. The calculation of San Clemente's appropriation limit for the fiscal year 2016 is presented on Exhibits I and II, attached to this report. For the fiscal year 2016 calculation, the annual adjustment factor is based on population change and the change in per capita personal income. This results in an overall increase in the appropriations limit of $3,634,855 or 4.94%. The budgeted proceeds of taxes total $39,721,629, which represents approximately 51.4% of the $77,214,923 the City is entitled to appropriate for fiscal year In addition, the City remains in compliance with the appropriations limit established for fiscal year For purposes of this calculation, the per capita personal income change and the yearto-year population increase have been provided by the State Department of Finance. Recommended Action: STAFF RECOMMENDS THAT the City Council: 1. Approve selection of the following annual adjustment factors : a. Population increase for the County of Orange b. Increase in California per capita personal income. Finance Agenda Report /60-1

2 Agenda Report Page 2 2. Approve the attached resolution establishing the appropriations limit for the fiscal year Attachments: 1) Resolution No establishing appropriations limit for fiscal year ) Exhibit I -Appropriations Limit Computation for Fiscal Year ) Exhibit II -Allocation of Revenues Notification: None / 60-2

3 RESOLUTION NO. Attachment 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ESTABLISHING AN APPROPRJATIONS LIMIT PURSUANT TO ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION. WHEREAS, Article XIII B of the California Constitution provides that the total annual appropriations subject to limitation of each government entity, including this City, shall not exceed the appropriations limit of such government entity for the prior year adjusted for changes in the local assessment roll for non-residential construction or personal income and population, except as otherwise provided in said Article XIII B and implementing State Statutes; and WHEREAS, pursuant to Article XIII B of the California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to establish its annual appropriations limit; and WHEREAS, the Finance Manager of the City of San Clemente has calculated and determined that the appropriations limit be established in the amount of $77,214,923 for the Fiscal Year 2016 (the "Appropriations Limit"). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE HEREBY RESOL YES AS FOLLOWS: SECTION 1. The City Council of the City of San Clemente, California finds that the Appropriations Limit in the amount of $77,214,923 is hereby established for said Fiscal Year SECTION 2. That all supporting documentation used in the determination of the Appropriations Limit shall be made available at the office of the City Municipal Services Officer during normal business hours for the personal inspection of the public. SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED AND ADOPTED this day of ~ / 60-3

4 Resolution No. Page2 Mayor of the City of San Clemente, California ATTEST: CITY CLERK of the City of San Clemente, California STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF SAN CLEMENTE ) I, JOANNE BAADE, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. was adopted at a regular meeting of the City Council of the City of San Clemente held on the 16th day of June, 2015, by the following vote: AYhS: NOES: ABSENT: Approved as to form: CITY CLERK of the City of San Clemente, California City Attorney / 60-4

5 Attachment 2 City of San Clemente Article XIII B: Appropriations Limit Computation For The Fiscal Year Appropriations limit for 2015 $ 73,580,068 (1) 2. Annual Adjustment Factor a. Per capita personal income change 3.82% (2) b. Population change 1.08% (3) ( times ) FY 2015 limit times annual adjustment factor 77,214, Less FY 2015 excess user fees 0 5. Appropriations Limit for FY ,214, FY 2016 proceeds from taxes \ 39,721, Margin $ 37,493,294 (4) Notes: (1) (2) (3) Established by resolution Source is the State Department of Finance The higher of the City population change or the total County population change is used for this factor. For 2016, the County change exceeds the City. The difference in County population of 3,146,789 at 1/15 and population of 3,113,306 at 1/14 divided by 3,113,306 = 1.08% (4) The comparable margin projected for FY 2015 is $35,827,821($73,580,068 less $37,752,247) / 60-5

6 Attachment 3 City of San Clemente Allocation of Revenues Between Proceeds & Nonproceeds of Taxes Projected Budgeted 2016 Taxes Nontaxes Taxes Non taxes General Fund: Property Tax 25,820,810 27,260, 150 Other Taxes Sales & Use Tax 7,889,410 8,891,000 Transient Occupancy Tax 1,795,000 1,875,000 Property Transfer Tax 525, ,000 Business License Tax 845, ,000 Total Other Taxes 77,054,670 72,747,000 Permits and Fees 1,734,180 1,942,530 Fines, Forfeitures and Penalties 889,1 )0 806,000 From the Use of Money and Property 1,776,960 1,775,420 Less: Unallocated Interest (183,000) (183,000) Total From Money and Property,,-593,960 7,592,420 Franchise Fees 2,394,950 2,458,950 Revenue From Other Agencies Other Federal Grants 2,180 0 Motor Vehicle Tax 28,180 35,000 Other State Grants 559,730 0 Special District Augmentation Fund Homeowners Exemption 160, ,000 State Grants 248, ,000 Total Revenue From Other Agencies 748,9/Q 2_5-P, , ,000 Current Service Charges 7,990,?60 7,388,700 Other Income l,3~1,390 1,582,090 Sub-Total 37,624,330 16,234,310 39,591,150 15,923,690 Interest Allocation Percentage 69.9% 30.1% 71.3% 28.7% Interest Allocation 127,977 55, ,479 52,521 Total General Fund 37,752,247 76,289,}93 39,721,629 15,976,271 Other Funds Special Revenue Funds 6,682,010 6,258,100 Capital Projects Funds 2,078,,180 4,490,510 Debt Service Fund 593, ,920 Internal Service Funds 11,213,000 11,008,2?0 Enterprise Funds Water 23,403,530 26,286,670 Sewer 18,608,930 12,563,660 Storm Drain Utility 3,221,500 2,431,500 Solid Waste Management 145, ,000 Golf 2,592,960 2,695,920 Clean Ocean 3,494,000 2,831,500 Total Enterprise Funds 51,465,920 46,954,250 Totals 37,752,247 88,231,843 39,721,629 85,196, / 60-6

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