CC - Item 4D - Appropriation Limit and Annual Budget0
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUN IL
FROM: ANDREW C. LAZZARETTO, CITY MANAGE
DATE: JUNE 12, 2007
SUBJECT: ADOPTION OF THE CITY OF ROSEMEAD'S FISCAL YEAR 2007-08
APPROPRIATION LIMIT AND ANNUAL BUDGET
SUMMARY
Article XIIIB of the Constitution of the State of California was enacted by a vote of the
people as Proposition 4 (the Gann Initiative) in November 1979. This law limits the level
of most appropriations from tax sources that the state and most local government
entities are permitted to make in any given year. It also requires that each
governmental unit annually calculate its Appropriations Limit and adopt it by resolution
prior to the beginning of the fiscal year under consideration. In addition Government
Code Section 7910 requires that 15 days prior to this meeting, documentation used in
determination of the Appropriations Limit shall be made available to the public and this
information was made available in this manner.
The City of Rosemead's Appropriations Limit and Appropriations Subject to the Limit
were both calculated in accordance with guidelines issued by the League of California
Cities. Utilization of this approach facilitates the annual review requirement. The
results of these calculations are:
Appropriations Limit for FY2008 $33,405,778
Appropriations Subject to the Limit 14,539,039
Amount under Limit $18,866,739
Staff Recommendation
Staff recommends that the City Council adopt Resolution No. 2007-18 approving fiscal
year 2007-08 Appropriation Limit according to Article XIII-B (Gann Initiative) of the
Constitution of the State of California, and approving the fiscal year 2007-08 Annual
Budget, and making the appropriation for amounts budgeted.
APPROVED FOR CITY COUNCIL AGENDA:
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City Council Meeting
June 12, 2007
Page 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
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Lisa Pedote
Director of Finance
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RESOLUTION NO. 2007-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD ADOPTING AN APPROPRIATIONS LIMITATION
FOR THE 2007-08 FISCAL YEAR AND ADOPTING THE ANNUAL
BUDGET FOR 2007-08, MAKING APPROPRIATIONS FOR THE
AMOUNTS BUDGETED
WHEREAS, Article XIII-B of the Constitution of the State of California provides that
total annual appropriations subject to limitation of the City shall not exceed the appropriations
limit of the City for the prior year as adjusted for annual adjustment factors; and
WHEREAS, Article XIII-B was modified in June, 1990 by the approval of Proposition
111 and SB 88 (Chapter 60/90) which revised the annual adjustment factors to be applied to
the 1986-87 Appropriation Limit and each year thereafter; and
WHEREAS, the decision as to which of the factors: a) either the California Per Capita
Income or the percentage change in the local assessment roll due to local non-residential
construction; b) either the change in population in the City or County; must be done by a
recorded vote of the City Council; and
WHEREAS, the City Council wishes to set an appropriation limitation for the 2007-08
Fiscal Year on those appropriations subject to limitation under Article XIII-B; and
WHEREAS, a proposed annual budget for the City of Rosemead for the Fiscal Year
commencing on July 1, 2007 and ending June 30, 2008 was submitted to the City Council and
is on file in the City Clerk's office; and
WHEREAS, proceedings for the adoption of said budget have been duly taken; and
WHEREAS, the City Council has made certain revisions, corrections, and modifications
to said proposed budget; and
WHEREAS, the City Manager has caused the proposed budget document to be
corrected to reflect the changes ordered by the City Council
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES
RESOLVE AS FOLLOWS:
Section 1. That the cost of living factor used to compute the appropriation limit is
the percentage change in the California per capita personal income combined with the change
in population in Los Angeles County are to be applied to the 1986-87 limit and each year
thereafter, and that the annual appropriation limitation for the City of Rosemead during the
2007-08 Fiscal Year for appropriations subject to limitation under Article XIII-B shall be thirty-
seven million, two hundred two thousand, five hundred forty-five ($37,202,545).
Section 2. The Budget, as amended, is adopted as the Annual Budget of the City of
Rosemead for the fiscal year commencing on July 1, 2007 and ending June 30, 2008.
Section 3. There is hereby appropriated to each account set forth in the
"Expenditure Appropriation by Function" of said budget attached hereto, and made a part
hereof as though fully set forth herein, the sum shown for such account in the 2007-08 Budget
Column, and the City Manager is authorized and empowered to expend such sum for the
purpose of such account, but no expenditure by any office or department for any item within
an account shall exceed the amount budgeted without prior written approval of the City
Manager.
Section 4. The Mayor shall sign and the City Clerk shall certify to the passage and
adoption of this Resolution and thereupon the same shall take effect and be in force.
PASSED, APPROVED and ADOPTED this 12th day of June, 2007.
MAYOR OF THE CITY OF ROSEMEAD
ATTEST:
City Clerk