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Home My WebLink AboutRES 2006-56RESOLUTION NO. 2006 -56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2006- 2007 AND AMENDING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2005- 2006 and 2004-2005 FOR THE CITY OF DIAMOND BAR IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE WHE=REAS, Article XIII B of the Constitution of the State of California (enacted with the passage of Proposition 4 in 1979 and modified with the passage of Proposition 111 in 1990), provides that the total annual appropriations limit of such entity for the prior year be adjusted for changes in the non-residential assessed valuation or the percentage change in the California Per Capita Income and population except as otherwise specifically provided for in said Article; and WHE=REAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article X111 B at a regularly scheduled meeting or a noticed special meeting. Prior to such meeting, documentation used in the determination of the appropriation limit shall be available to the public; and WHEREAS, Proposition 111 as approved by the voters of the State of California, revised the method for calculating the Gann Spending Limit, it also requires a recorded voice vote of the City Council regarding which of the annual adjustment factors have been selected each year; and WHEREAS, Section 7902 (a) and 7902.6 of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the fiscal year; and WHEREAS, the City Council of the City of Diamond Bar wishes to establish the appropriation limit for fiscal year 2006-2007 and revise the appropriation limits for fiscal year 2005- 2006 and 2004-2005 for the City of Diamond Bar. 2006--56 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar, California, as follows: Section 1. That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Diamond Bar for fiscal year 2006-2007 was available to the public in City offices of said City at least fifteen days prior to this date. Section 2. That the County of Los Angeles LAFCO, established the original appropriation limit for the newly incorporated City. Section 3. That the factor selected is the growth factor of Los Angeles County population change over the prior year and the change in California per capita personal income as the annual adjustment growth factor for use in calculating the Fiscal Year 2006-2007, 2005-2006, 2004-2005 Appropriations Limits. Section 4. That the Appropriations Limit for the City of Diamond Bar as established in accordance with Section 7902(a) and Section 7902.6 of the California Government Code is $28,885,277 for fiscal year 2006-2007. Section 5. That the Appropriation Limits for the City of Diamond Bar as established in accordance with Section 7902(x) and Section 7902.6 of the California Government Code have been revised to $27,569,946 for fiscal year 2005-2006 and $25,886,770 for fiscal year 2004-2005. Section 6. That the Mayor of the City of Diamond Bar shall sign and the City Clerk shall certify to the passage and adoption of this Resolution No. 2006-XXXX . 2006--56 1 1 Li PASSED, APPROVED AND ADOPTED this 20th day of June , 2006. &rZkn� Carol Herrera, Mayor I, Tommye Cribbins, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Resolution was passed, and approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 20thday of June , 2006, by the following vote: AYES: COUNCIIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/zi.rbes ABSTAINED: COUNCIL MEMBERS: None Tommye°Cribbins, City Cleric City of Diamond Bar 2006-56 r -J, 1 1 CITY OF DIAMOND BAR APPROPRIATIONS; LIMIT WORK SHEET 2006-2007 California Per Capita Income 3.96% % Change over Prior Year Population Change 0.21% % Change over Prior Year (City) Per Capita converted to a Ratio 1.0396 Population converted to a Ratio 1.0021 Calculation of Growth Factor 1.0418 (Growth Factor = Per Capita Ratio x Population Ratio) 2005-2006 Appropriations Limit 27,569,946 2006-2007 Appropriations Limit $28,721,905 (New Appropriations Limit = Prior Year Appropriations Limit x Growth Factor) 2006--56 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2006-2007 California Per Capita Income 3.96% % Change over Prior Year Population Change 0.78% % Change over Prior Year (County) Per Capita converted to a Ratio 1.0396 Population converted to a Ratio 1.0078 Calculation of Growth Factor 1.0477 (Growth Factor = Per Capita Ratio x Population Ratio) 2005-2006 Appropriations Limit 27,569,946 2006-2007 Appropriations Limit $28,885,277 (New Appropriations Limit = Prior Year Appropriations Limit x Growth Factor) 2006-56 1 1 CITY OF DIAMOND BAR .APPROPRIATIONS LIK41T WORK SHEET 2006-2007 % Change Non Residential New Construction (City) Population Change % Change over Prior Year (City) Nonresidential converted to a Ratio Population Converted to a Ratio Calculation of Growth Factor 2005-2006 Appropriations Limit 2006-2007 Appropriations Limit 0.20% 0.21% 1.002 1.0021 1.0041 27,569,946 $27,625,086 (New Appropriations Limit = Prior Year Appropriations Limit x Growth Factor) 2006-56 CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT EXHIBIT "A' 2006-2007 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base 22,364,058 2003-04 Adjusted Base 24,723,466 2004-05 Adjusted Base (revision) 25,886,770 2005-06 Adjusted Base (revision) 27,569,946 2006-07 Adjusted Base 28,885,277 2006-56 City of Diamond Bar Recalculation of GANN Limit FY 05/06 6/30/2006 Obiective• To verify that the appropriation limit amount that was adopted for fiscal year ended June 30, 2006 was accurate and that it was calculated using the correct population and inflation factors. Methodolomr: Using letter from the State Department of Finance that supplied the population and inflation factors, we recalculated the GANN appropriation limit. We compared the recalculated limit to the amount that was adopted by council and inquired about any differences. Scope: Appropriation limit for FY 05-06 Appropriations limit - for the FY ending June 30, 2005 (as corrected) Adjustment factors for the fiscal year ended June 30, 2005 1 Combined Factor 1.06502068 Appropriations Limit for fiscal year ended June 30, 2006 25,886,770 0.06502068 1,683,175 27,569,946 2006--56 Inflation Population Factor Factor 1.0526 1.0118 Adjustment for inflation and population 1 Combined Factor 1.06502068 Appropriations Limit for fiscal year ended June 30, 2006 25,886,770 0.06502068 1,683,175 27,569,946 2006--56 City of Diamond Bar Recalculation of GANN Limit FY 04/05 6/30/2005 Obiective: To verify that the appropriation limit amount that was adopted for fiscal year ended June 30, 2004 was accurate and that it was calculated using the correct population and inflation factors. Methodology: Using letter from the State Department of Finance that supplied the population and inflation factors, we recalculated the GANN appropriation limit. We compared the recalculated limit to the amount that was adopted by council and inquired about any differences. Scone: Appropriation limit for FY 04-05 Appropriations limit - FR ending June 30, 2004 Adjustment factors for the fiscal year ended June 30, 2005 Inflation Population Combined Factor Factor Factor 1.0328 1.0138 1.0471 Adjustment for inflation and population Appropriations Limit for fiscal year ended June 30, 2005 Adopted Approprations limit for fiscal year ended June 30, 2005 Difference FY 04-05 24,723,466 0.0471 1,163,304 25,886,770 24,874,224 1,007,546 (a) Note: The difference is due to the City used the change in assessed value as a result of change in non residential new construction of .63%. In addition, this factor was not multiplied with the population factor. 2006-56