09 Staff Report - Establishing Fascial Year 2004/05 Grann Appropriation Limit
DATE: TO: COUNCIL AGENDA REPORT JUNE 7, 2004 MEETINGDATE: 6/7/04 ITEM NO. cr FROM: SUBJECT: TOWN MANAGER ADOPT RESOLUTION ESTABLISHING THE FISCAL
YEAR 2004/05 GANN APPROPRIATION LIMIT FOR THE TOWN OF LOS GATOS RECOMMENDATION: Adopt resolution approving the Gann Appropriations Limit for FY 2004/05. BACKGROUND: Article XIIIB ofthe
California State Constitution was enactedbyProposition 4. The Gann Initiative of 1979, commonly referred to as the Gann Appropriations Limit, mandates a limit on the amount ofproceeds
oftaxes that state and local governments can appropriate and spend each year. Councils may use the change in county or city population combined with a factor of either California per
capita personal income or the change in local assessment roll due to nonresidential construction. DISCUSSION: Each year's limit is based on the ainb1irltoftaxp:tbceedslhafWefealith6nzeCltcFoi:fsperil
infisca:I year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. Each year the Town establishes its appropriations limit for the following
fiscal year. The appropriation limit for fiscal year 2004/05 was calculated using a factor comprised ofthe change in population for the county combined with the change in California
per capita personal income. Calculation ofthe 2004/05 Gann Appropriations Limit follows: FY2004/05 Calculation % Increase in County Population 1.0072 X Change in Per Capita Income 1.0328
FY 03/04 FY04/05 Appropriation Appropriation Appropriation Factor limit Limit 1.04023616 X $ 21,397,082 = $ 22,258,018 PREPARED BY: STEPHEN CONWAY, FINANCE DIRECTOR Reviewed by: %-::s
Assistant Town Manager Town Attorney·__Clerk __Community Development Revised: 5127/04 11:33 am Reformatted: 5/30/02
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION ESTABLISHING THE FY 2004/05 GANN APPROPRIATIONS LIMIT JUNE 7, 2004 This Appropriations limit is the total amount of tax money
that can be appropriated by the Town. The proposed 2004/05 budget anticipates $16,401,762 in taxes, which is $5,856,256 less than the appropriation limit of $22,258,018. CONCLUSION:
It is recommended that the Council adopt the resolution approving the Gann Appropriations Limit of $22,258,018. ENVIRONMENTAL ASSESSMENTS Is not a project defined under CEQA and no further
action is required. Attachments: 1. Resolution 2. Gann Appropriations Limit calculation
RESOLUTION 2004-RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ESTABLISIllNG THE 2004/05 FISCAL YEAR APPROPRIATION LIMIT FOR THE TOWN OF LOS GATOS WHEREAS, the Town of Los Gatos
has established its Base Year appropriation limit as $5,849,120 (Five Million, Eight Hundred Forty-nine, One Hundred Twenty Dollars); and WHEREAS, the cumulative appropriate changes
to the Town's population, the Consumer Price Index, and per capita income statewide since the base year established the revised Proposition Ill, 1996/97 Fiscal Year Appropriation Limit
as $14,714,173 (Fourteen Million, Seven Hundred Fourteen Thousand, One Hundred Seventy Three Dollars) as adjusted; and ·WHEREAS, to the best of this Town's lmowledge and belief, the
State Department of Finance figures provid€d t0this 1'owni-iliespollse toPtoposition nrpa..ssedby thevotets ih.Jline 1.990, asauclited;:r:eflecttne appropriate statisticsrelevant to
the calculation of the 2004/05 Fiscal Year Appropriation Limit: • County population adjustments for 2004/2004/05, plus 1.0072 (One point zero, zero, seven, two percent) • Town population
adjustments for 2004/05, plus 1.0004 (One point zero, zero, zero, four percent) • Per Capita Persorial' Income change for 2004105, plus 1.0328 (One point three, two, eighf percent).
THEREFORE, BE IT RESOLVED, based on the foregoing figures and the provisions ofArticle XIllB of the Constitution of the State of California, the following figure accurately represents
the 2003/04 Fiscal Year Appropriation Limit for the Town ofLos Gatos as: $21,397,082 (Twenty One Million, Three Hundred Ninety Seven Thousand, Eighty Two Dollars).
PASSEDAND ADOPTED at a regular meeting ofthe Town Council ofthe Town ofLos Gatos, California, held on the 2nd day of June, 2003 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT:
ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Attachment 1
APPROPRIATION LIMIT FACTORS Year Beginning County Town Per Ending % Ended Appropriation Population Population Capita Appropriation Limit June 30 Limit Factor Factor Income Limit Increase
1995 11,896,630 1.016 1.0201 1.0071 2.73% 1996 12,221,916 1.017 1.0001 1.0472 6.50% 1997 13,016,370 1.0800 1.007 1.0467 13.04% 1998 14,714,173 1.0216 1.0201 1.0467 6.93% 1999 15,733,994
1.0212 1.0137 1.0415 6.36% 2000 16,734,358 1.0173 1.0071 1.0453 6.34% 2001 17,795,043 1.0163 1.0095 1.0491 6.62% 2002 18,973,081 1.0147 1.0107 1.0782 9.40% 2003 20,757,490 1.0125 1.0051
0.9873 -0.04% 2004 20,750,044 1.0079 1.0010 1.0231 3.12% FY 2004/05 Calculation % Increase in County Population 1.0072 x Change in Per Capita Income 1.0328 FY 03/04 FY 04/05 Appropriation
Appropriation Appropriation Factor Limit Limit 1.04023616 X $ 21,397,082 = $ 22,258,018 Percentage of Appropriation FY 04/05 Tax Revenues 16,401,762 FY 04/05 Appropriation Limit 1 $
22,258,018 = Percentage of Limit 74% Attachment 2