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HomeMy WebLinkAbout28-20RESOLUTION 28-20 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS ADOPTING THE FISCAL YEAR 2020-21 APPROPRIATION LIMIT AND THE FISCAL YEAR 2020-21 BUDGET WHEREAS, the City Council of the Town of Los Altos Hills has received and completed its review of the proposed 2020-21 Operating and Capital Budget; and WHEREAS, the City Council of the Town of Los Altos Hills now desires to adopt the Appropriations Limit and budget for fiscal year 2020-21. NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby resolve as follows; I. The Gann Appropriations Limit as shown in Attachment IA is hereby approved; and II. The Operating and Capital Budget as shown in the attached budget document is hereby approved; and A. The amount of the 2020-21 fiscal year budget for each account area of the budget may be drawn upon in the form of warrants issued for payment of demands and certified in accordance with the provisions of California Government Code Section 37208 and 37209. B. The budget is adopted and shall be controlled at the Fund level by department for the operating budget and by the project level for capital improvement projects. C. The City Manager is hereby authorized to move budgeted dollars between departments (for the operating budget) and between projects (for the capital improvement budget) during the fiscal year if those transfers are from the same funding source and the overall cumulative appropriation is not increased. D. The Administrative Services Director is hereby authorized to carry forward unspent appropriations to the 2020-21 fiscal year if such funds are necessary to complete budgeted projects. E. The Administrative Services Director is hereby authorized to make corrections to the budget as reflected in the attached budget document that are errors or inconsistencies without increasing overall appropriations within the same funding source. F. The City Manager is hereby authorized to solicit bids on the open market for projects budgeted herein. G. The Administrative Services Director shall periodically report to the City Council the amount and classification of revenues received and expenditures made. H. A copy of the adopted budget, signed by the Mayor and attended to by the City Clerk, shall be kept on file with the City Clerk of the Town of Los Altos Hills, as the official budget of the Town of Los Altos Hills for the 2020-21 fiscal year; Resolution 28-20 Page 1 The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 18th day of June 2020 by the following vote: AYES: Wu, Tanlcha, Corrigan, Spreen, Tyson NOES: None ABSTAIN: None ABSENT: None BY: Michelle Wu, Mayor ATTEST: Deborah Padovan, City Cleric Resolution 28-20 Page 2 FISCAL YEAR 2020-21 Calculation of Appropriations Limits The Town is required by the State Constitution, Article XIIIB (Proposition 4,) to annually calculate the maximum amount of appropriations subject to limitation. The calculation is intended to limit the annual growth in tax revenues used to fund governmental expenditures in California. Article XIIIB was changed with the passage of Proposition 111 on the June 1990 ballot. These changes permit greater flexibility with regard to annually calculating increases in the appropriations limit (Gann Limit) by allowing additional growth factors to be used. The factors permitting the maximum allowable increase in the appropriations limit are chosen for the calculation each fiscal year. As can be seen below, the City is substantially under its appropriations limit. The difference between the appropriations limit and the appropriations subject to limitation has grown over time as the limit has been substantially increased by the annual adjustment factors. This, combines with the comparatively slower pace of growth in proceeds of taxes over the same time period, has contributed to the amount under the appropriations limit. Fiscal Year 2019-20 Limit $7,476,088 2020 Change in Town of Los Altos Hills Population 1.0037 2020-21 Change in California Per Capita Personal Income 1.0373 Fiscal Year 2020-21 Limit $7,783,639 Fiscal Year 2020-21 Budget Amount Subject to Limitation $7,421,184 Amount Under Appropriation Limit $362,455 Resolution 28-20 Page 3