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CC Resolution No. 9880RESOLUTION NO. 9880 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ESTABLISHING AN APPROPRIATION LIMIT FOR FISCAL YEAR 1997-98 WHEREAS, the State of California has adopted legislation requiring local jurisdictions to calculate their appropriation limits in complying with Article XIII B; and WHEREAS, said limits are determined by a formula based upon change in population, (city of county), combined with either the change in inflation (California per capita income) or the change in the local assessment roll due to local nonresidential construction; and WHEREAS, the local governing body is required to set an appropriation limit by adoption of a resolution; and WHEREAS, the county population percentage change 1.021% and the California per capita personal income change is 4.671%. In computing the 1997-98 limit, City Council has elected to use the county population percentage change, and the California per capita income change was used, but the Council has a right to change nonresidential assessed valuation percentage when the figure is available. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves a 1997-98 fiscal appropriation limit of $33,664,197. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of June 1997, by the following vote: Vote AYES: Burnett, NOES: None ABSENT: None ABSTAIN: None ATTEST: City Clerk Members of the City Council Chang, Dean, Sorensen, Bautista APPROVED: ~l/~yor, ~ity ~f ~upertino City of Cupertino Appropriation Limitation Calculation 1997-98 Budget An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. The 1986-87 fiscal year is used as the base year. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and population change. The City's 1997-98 adopted budget appropriations that are subject to limitation are $11.8 million as shown below: I. Determination of Appropriation Limit: A 1996-97 Appropriation Limit Adjustment Factors 1. Population Ratio 1.0210 2. Inflation Ratio 1.0467 B. Total Adjustment (1 * 2) 1997-98 Appropriation Limit (A * B) II. Determination of Appropriations Subject to Limitation: Proceeds of Taxes Exclusions: Debt Service 1997-98 Appropriations Subject to Limitation Current Year Limit Amount Under Appropriation Limit $31,500,138 1.0687 $33,664,197 $17,148,959 $ 5,379,100 $11,769,859 $33,664,197 $21,894,338