2002 AGN AUG 06 I07 - Laserfiche WebLink

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Item #7 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF August 6, 2002 TO: Honorable Mayor and City Council Members FROM: Dilu de Alwis, Director of Finance SUBJECT: AMENDED 2001-2002 ANNUAL APPROPRIATION LIMIT DATE: July 22, 2002 BACKGROUND On November 6, 1979, the voters of California added Article XIII -13 to the State Constitution placing various limitations on the appropriations of state and local governments. Each year the City must calculate its annual limitby adjusting the previous year's limit by changes in the cost of living and population DISCUSSION/ ANALYSIS This is a correction to the appropriations limit adopted for the 2001-2002 budget year. The original appropriations limit was calculated incorrectly as it was based on the 1998-99 limit instead of the 1999-00 limit. In addition, the amount used as "Sales and Use Taxes" did not agree to the adopted budget. The final adjustment to the calculation reflects the change in the City's election of growth factor from the City's growth to that of the County as a whole. The City's corrected appropriations limit for fiscal year 2001-2002 is $38,871,925. The corrected appropriations subject to limitation are $11,262,689 (see Schedule B). Therefore, the City is under its limit by $27,609,236 (see Schedule A). As a result, there is no possibility of the City needing to refund any taxes previously collected. ALTERNATIVE None FINANCIAL IMPACT None ENVIRONMENTAL IMPACT None In order to comply with Article XIII -B of the State Constitution, staff recommends Council approve the amended calculation of the 2001-02 annual appropriations limit (as set forth in attached Schedules A and B) by adopting the attached Resolution. REVIEW TEAMOS�— City Attorney: Finance Director: City Manager: OTHER: