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04/05 05/06 % 06/07 % Actual Adopted Change Adopted Change Taxes: Property 11,567,188 $ 11,719,907 $ 1.32% 13,177,577 $ 12.44% Sales 9,973,506 10,000,000 0.27% 10,368,000 3.68% Franchise 1,262,319 1,265,000 0.21% 1,320,000 4.35% Transient Occupancy Taxes 894,179 950,000 6.24% 1,120,000 17.89% Other Taxes 603,124 595,000 -1.35% 580,000 -2.52% Total Taxes 24,300,316 24,529,907 0.94% 26,565,577 8.38% Licenses & Permits 1,529,633 1,257,200 -17.81% 1,329,000 5.71% Fines & Forfeitures 272,670 300,000 10.02% 322,000 7.33% Investment Income 1,880,564 1,537,226 -18.26% 1,912,383 24.40% Intergovernmental Revenues: In-Lieu Tax 847,109 250,000 -70.49% 250,000 0.00% Gasoline Tax 729,065 776,000 6.44% 731,000 -5.80% Community Development Block Grant 174,500 166,447 -4.61% 148,070 -11.04% Other 290,738 337,286 16.01% 436,596 29.44% Total Intergovernmental Revenue 2,041,412 1,529,733 -25.06% 1,565,666 2.35% Charges for Services 4,195,507 3,881,257 -7.49% 4,114,070 6.00% Other Revenue 2,150,660 1,592,070 -25.97% 1,961,005 23.17% Rentals/Leases 1,215,252 1,269,830 4.49% 1,345,040 5.92% Debt Proceeds (2005 Debt Issue Proceeds) 12,625,712 - -100.00% - 0.00% Special Assessments 1,171,973 1,164,610 -0.63% 1,172,430 0.67% Charges to Operating Departments 2,396,242 1,979,514 -17.39% 2,563,023 29.48% Operating Fund Reserves (Beg. Fund Bal.) - 4,532,115 100.00% 1,378,688 -69.58% Interfund Operating Transfers 3,142,793 3,769,232 19.93% 3,165,858 -16.01% Total Operating Revenue 56,922,734 47,342,694 -16.83% 47,394,740 0.11% Capital Project Funding (Beg. Fund Bal.) - 175,000 100.00% 3,469,800 1882.74% Capital Project Funding (Rev./Grants/Debt) 1,045,301 5,045,600 382.69% 405,000 -91.97% Interfund Capital Transfers 4,398,426 5,220,600 18.69% 3,519,800 -32.58% Total Revenue 62,366,461 $ 57,783,894 $ -7.35% 54,789,340 $ -5.18% Revenue Source Total City & RDA Revenue Summary Total City & RDA Revenue Summary - $54,789,340 Capital Funding/Transfers 13% Investment Income 3% Rents & Leases 2% Fines & Forfeitures 1% All Other Revenue 11% Taxes 49% Licenses & Permits 2% Intergovernmental 3% Charges for Services 8% Operating Transfers 6% Special Assessments 2% - 51 - ---PAGE BREAK--- 04/05 05/06 06/07 $ % Fund Actual Adopted Adopted Change Change 101 General Fund 28,955,725 $ 30,929,750 $ 33,284,434 $ 2,354,684 $ 7.61% 204 Gas Tax 1,027,739 1,153,438 1,180,640 27,202 2.36% 205 Asset Forfeiture (Drug Enforcement) 20,000 19,310 5,000 (14,310) -74.11% 207 Lighting District 2,615,895 2,493,012 2,614,183 121,171 4.86% 208 Housing & Community Develop. 238,254 410,530 371,482 (39,048) -9.51% 209 Environmental Services 647,663 817,900 773,000 (44,900) -5.49% 210 Supplemental Law Enforcement 102,741 - - - 0.00% 211 Federal Urban Aid Fund 6,385 139,138 - (139,138) -100.00% 212 State/County Grants 548,051 4,703,600 25,000 (4,678,600) -99.47% 216 TDA Grant (Federal) - - 25,000 25,000 0.00% 218 Other Federal Grants 249,312 320,190 7,500 (312,690) -97.66% 223 Low & Moderate Income Housing 1,219,465 1,297,118 1,166,700 (130,418) -10.05% 295 Parkland Dedication 688,899 20,000 135,000 115,000 575.00% 360 Debt Service - LID 27 - - - - 0.00% 364 Debt Service - RDA 17,281,589 4,629,185 4,555,627 (73,558) -1.59% 366 Debt Service - 1993/2002 COP 650,169 879,882 880,356 474 0.05% 367 Debt Service - LID 30 74,067 55,610 52,430 (3,180) -5.72% 368 Debt Service - 1997 COP 735,826 733,870 731,868 (2,002) -0.27% 431 City COP Projects 26,994 - - - 0.00% 433 RDA COP Projects - - - - 0.00% 434 RDA Administration/Projects 50,574 497,049 1,206,891 709,842 142.81% 435 Capital Projects 4,531,385 5,220,600 3,874,800 (1,345,800) -25.78% 437 RDA Bond Proceeds 116,496 175,000 550,000 375,000 214.29% 641 Motor Vehicle Pool 865,861 1,163,323 1,180,602 17,279 1.49% 647 Information Technology Pool 1,070,934 1,216,625 1,204,447 (12,178) -1.00% 690 Worker's Compensation 511,427 872,914 923,780 50,866 5.83% 693 Heritage Theatre Fund 55,705 - - - 0.00% 794 Parks & Museum Trust 71,941 31,600 34,920 3,320 10.51% 797 Senior Center Trust 3,364 4,250 5,680 1,430 33.65% Total Revenue & Transfers-In 62,366,461 $ 57,783,894 $ 54,789,340 $ (2,994,554) $ -5.18% Total City & RDA Revenue by Fund Fund Description (Includes Capital Project Revenue & Transfers-In) - 52 - ---PAGE BREAK--- 04/05 05/06 % 06/07 % Fund Actual Adopted Change Adopted Change 101 General Fund 29,464,157 $ 29,254,945 $ -0.71% 29,637,887 $ 1.31% Special Revenue Funds: 204 Gas Tax 964,441 1,107,763 14.86% 1,131,762 2.17% 207 Lighting District 2,246,437 2,327,512 3.61% 2,382,438 2.36% 208 Housing & Community Develop. 268,659 410,530 52.81% 371,482 -9.51% Misc. Grants & Other Special Revenue 102,741 - -100.00% - 0.00% Total City Special Revenue 3,582,278 3,845,805 7.36% 3,885,682 1.04% Misc. City Debt Service Funds 1,669,592 1,668,362 -0.07% 1,663,654 -0.28% Redevelopment Agency Funds: 223 Low & Moderate Income Housing 228,672 1,251,422 447.26% 500,253 -60.03% 364 RDA Debt Service 16,869,765 4,131,904 -75.51% 4,111,801 -0.49% 434 RDA Administration/Projects 305,290 334,610 9.60% 361,678 8.09% Total RDA Funds 17,403,727 5,717,936 -67.15% 4,973,732 -13.02% Internal Service Funds: 641 Motor Vehicle Pool 912,896 1,113,323 21.96% 1,130,602 1.55% 647 Information Technology Pool 1,367,423 1,195,950 -12.54% 1,183,772 -1.02% 690 Worker's Compensation 1,214,953 772,914 -36.38% 923,780 19.52% Total Internal Service Funds 3,495,272 3,082,187 -11.82% 3,238,154 5.06% Misc. Interfund Operating Transfers 3,142,793 3,769,232 19.93% 3,165,858 -16.01% Total Operating Expenditures 58,757,819 47,338,467 -19.43% 46,564,967 -1.63% Misc. Capital Projects & Capital Transfers 9,007,226 10,441,200 15.92% 7,394,600 -29.18% Total Expenditures 67,765,045 $ 57,779,667 $ -14.74% 53,959,567 $ -6.61% Total City & RDA Expenditure Summary Total City & RDA Expenditure Summary - $53,959,567 Fund Description Special Revenue Funds 7% Internal Service Funds 6% General Fund 55% Operating Transfers 6% Capital Projects 14% RDA Funds 9% City Debt Service Funds 3% - 53 - ---PAGE BREAK--- 04/05 05/06 06/07 $ % Fund Actual Adopted Adopted Change Change 101 General Fund 32,442,663 $ 30,925,523 $ 33,261,041 $ 2,335,518 $ 7.55% 204 Gas Tax 1,010,065 1,153,438 1,180,640 27,202 2.36% 205 Asset Forfeiture (Drug Enforcement) 5,000 19,310 5,000 (14,310) -74.11% 207 Lighting District 2,546,437 2,493,012 2,614,183 121,171 4.86% 208 Housing & Community Develop. 268,659 410,530 371,482 (39,048) -9.51% 209 Environmental Services 1,021,370 817,900 773,000 (44,900) -5.49% 210 Supplemental Law Enforcement 102,741 - - - 0.00% 211 Federal Urban Aid Fund 110,878 139,138 - (139,138) -100.00% 212 State/County Grants 540,048 4,703,600 25,000 (4,678,600) -99.47% 216 TDA Grant (Federal) 148 - 25,000 25,000 0.00% 218 Other Federal Grants 218,600 320,190 7,500 (312,690) -97.66% 223 Low & Moderate Income Housing 273,592 1,297,118 556,742 (740,376) -57.08% 295 Parkland Dedication 295,614 20,000 135,000 115,000 575.00% 360 Debt Service - LID 27 - - - - 0.00% 364 Debt Service - RDA 16,869,765 4,629,185 4,359,205 (269,980) -5.83% 366 Debt Service - 1993/2002 COP 877,689 879,882 880,356 474 0.05% 367 Debt Service - LID 30 56,897 55,610 52,430 (3,180) -5.72% 368 Debt Service - 1997 COP 735,826 733,870 731,868 (2,002) -0.27% 431 City COP Projects 603,440 - - - 0.00% 432 RDA 1999 TAB Projects - - - - 0.00% 433 RDA COP Projects - - - - 0.00% 434 RDA Administration/Projects 512,348 497,049 1,206,891 709,842 142.81% 435 Capital Projects 4,608,801 5,220,600 3,874,800 (1,345,800) -25.78% 437 RDA Bond Proceeds 989,913 175,000 550,000 375,000 214.29% 641 Motor Vehicle Pool 962,896 1,163,323 1,180,602 17,279 1.49% 647 Information Technology Pool 1,388,098 1,216,625 1,204,447 (12,178) -1.00% 690 Worker's Compensation 1,214,953 872,914 923,780 50,866 5.83% 693 Heritage Theatre Fund 66,607 - - - 0.00% 794 Museum Trust 33,667 31,600 34,920 3,320 10.51% 797 Senior Center Trust 7,790 4,250 5,680 1,430 33.65% Total Expenditures & Transfers-Out 67,764,505 $ 57,779,667 $ 53,959,567 $ (3,820,100) $ -6.61% Total City & RDA Expenditures by Fund Fund Description (Includes Capital Project Expenditures & Transfers-Out) - 54 - ---PAGE BREAK--- 04/05 05/06 % 06/07 % Actual Adopted Change Adopted Change Employee Services 21,355,181 $ 21,685,900 $ 1.55% 21,969,511 $ 1.31% Supplies, Services & Capital Outlay 20,328,289 21,303,669 4.80% 19,528,943 -8.33% Debt Service 18,540,356 5,800,266 -68.72% 5,775,455 -0.43% Transfers Out (Operating & Capital) 7,541,219 8,989,832 19.21% 6,685,658 -25.63% Total Expenditures 67,765,045 $ 57,779,667 $ -14.74% 53,959,567 $ -6.61% Description Total City & RDA Expenditures by Type Total City & RDA Expenditures by Type - $53,959,567 Supplies, Services & Capital Outlay 36% Debt Service 11% Employee Services 41% Transfers Out 12% - 55 - ---PAGE BREAK--- 04/05 05/06 % 06/07 % Actual Adopted Change Adopted Change Taxes: Property 5,657,676 $ 5,940,000 $ 4.99% 7,269,000 $ 22.37% Sales 9,973,506 10,000,000 0.27% 10,368,000 3.68% Franchise 1,262,319 1,265,000 0.21% 1,320,000 4.35% Transient Occupancy Taxes 894,179 950,000 6.24% 1,120,000 17.89% Other Taxes 603,123 595,000 -1.35% 580,000 -2.52% Total Taxes 18,390,803 18,750,000 1.95% 20,657,000 10.17% Licenses & Permits 1,529,633 1,257,200 -17.81% 1,329,000 5.71% Investment Income 821,576 850,000 3.46% 1,200,000 41.18% Intergovernmental Revenues: In-Lieu Tax 847,109 250,000 -70.49% 250,000 0.00% Other 151,453 279,096 84.28% 269,096 -3.58% Total Intergovernmental Revenue 998,562 529,096 -47.01% 519,096 -1.89% Charges for Services 3,596,653 3,173,607 -11.76% 3,386,436 6.71% Other Revenue: Rentals/Leases 1,215,252 1,269,830 4.49% 1,345,040 5.92% Fines & Forfeitures 272,670 300,000 10.02% 322,000 7.33% Other Miscellaneous Revenue 834,114 734,750 -11.91% 824,885 12.27% Program Funding (Beg. Fund Bal.) - 2,692,600 100.00% 563,204 -79.08% Interfund Operating Transfers 1,198,107 1,292,667 7.89% 1,069,473 -17.27% Total Other Revenue 3,520,143 6,289,847 78.68% 4,124,602 -34.42% Total Operating Revenue 28,857,370 30,849,750 6.90% 31,216,134 1.19% Capital Project Funding 98,355 80,000 100.00% 2,068,300 2485.38% Total General Fund Revenue 28,955,725 $ 30,929,750 $ 6.82% 33,284,434 $ 7.61% Revenue Source General Fund Revenue Summary General Fund Revenue Summary - $33,284,434 Franchise Fees 4% Sales Taxes 31% Other Taxes 2% Property Taxes 22% Licenses & Permits 4% Other Revenue 11% Capital Funding Sources 6% Operating Transfers 4% Transient Occupancy Taxes 4% Charges for Services 10% Rents & Leases 4% Inter- governmental 2% Investment Income 3% - 56 - ---PAGE BREAK--- 04/05 05/06 % 06/07 % Actual Adopted Change Adopted Change City Council 240,328 $ 226,764 $ -5.64% 224,646 $ -0.93% City Manager 1,126,466 1,062,787 -5.65% 1,076,432 1.28% City Clerk 410,615 387,007 -5.75% 439,913 13.67% City Attorney 207,898 203,951 -1.90% 206,151 1.08% City Treasurer 35,819 12,314 -65.62% 13,261 7.69% Recreation & Community Services 5,663,634 5,478,919 -3.26% 5,636,697 2.88% Finance 912,491 963,005 5.54% 997,411 3.57% Non-Departmental 584,228 606,720 3.85% 595,220 -1.90% Community Development 1,514,516 1,593,449 5.21% 1,610,289 1.06% Police 11,764,314 11,618,889 -1.24% 11,811,940 1.66% Fire 4,283,564 4,350,388 1.56% 4,477,854 2.93% Public Works 2,720,284 2,750,752 1.12% 2,548,073 -7.37% Interfund Operating Transfers 1,586,635 1,590,578 0.25% 1,554,854 -2.25% Total Operating Expenditures 31,050,792 30,845,523 -0.66% 31,192,741 1.13% Interfund Capital Transfers 1,391,871 80,000 -94.25% 2,068,300 2485.38% Total Expenditures 32,442,663 $ 30,925,523 $ -4.68% 33,261,041 $ 7.55% Description General Fund Expenditure Summary General Fund Expenditure Summary - $33,261,041 Interfund Operating Transfers 5% Interfund Capital Transfers 6% Community Development 5% Finance & Non-Departmental 5% Recreation & Community Services 17% City Administration 6% Public Works 8% Police Services 35% Fire Services 13% - 57 - ---PAGE BREAK--- 04/05 05/06 % 06/07 % Actual Adopted Change Adopted Change Employee Services 18,617,129 $ 18,827,053 $ 1.13% 19,039,870 $ 1.13% Supplies, Services & Capital Outlay 10,847,028 10,427,892 -3.86% 10,598,017 1.63% Transfers Out (Operating & Capital) 2,978,506 1,670,578 -43.91% 3,623,154 116.88% Total Expenditures 32,442,663 $ 30,925,523 $ -4.68% 33,261,041 $ 7.55% Description General Fund Expenditures by Type General Fund Expenditures by Type - $33,261,041 Employee Services 57% Transfers Out 11% Supplies, Services & Capital Outlay 32% - 58 - ---PAGE BREAK--- 05/06 05/06 06/07 06/07 Fund Fund Description Transfers-In Transfers-Out Transfers-In Transfers-Out 101 General Fund 1,292,667 $ 1,670,578 $ 1,069,473 $ 3,623,154 $ Special Revenue Funds: 204 Gas Tax 377,438 45,675 289,640 48,878 205 Drug Enforcement/Asset Forfeiture - 19,310 - 5,000 207 Lighting District 869,012 165,500 829,183 231,745 208 Housing & Community Development 6,000 - 6,000 - 209 Environmental Services - 817,900 - 773,000 210 Supplemental Law Enforcement - - - - 211 Federal Urban Aid - 139,138 - - 212 State/Other Grants - 4,703,600 - 25,000 216 TDA Grant (Federal) - - - 25,000 218 Other Federal Grants - 320,190 - 7,500 223 RDA Housing - 45,696 - 56,489 295 Parkland Dedication Trust - 20,000 - 135,000 Debt Service Funds: 364 Debt Service - RDA 200,000 497,281 200,000 247,404 366 Debt Service - 1993/2002 COP 116,273 - 116,551 - 367 Debt Service - LID #30 - 1,000 - 1,000 368 Debt Service - 1997 COP 430,793 - 429,620 - Capital Project Funds: 431 City Bond Proceeds - - - - 434 RDA Administration/Projects 477,049 162,439 225,391 845,213 435 Capital Projects Fund 5,220,600 - 3,519,800 - 437 RDA Bond Proceeds - 175,000 - 550,000 Internal Service Funds: 641 Motor Vehicle Pool - 50,000 - 50,000 647 Information Technology Pool - 20,675 - 20,675 690 Workers Compensation Pool - 100,000 - - Fiduciary Funds: 794 Parks & Museum Trust - 31,600 - 34,920 797 Senior Center Trust - 4,250 - 5,680 Total Transfers 8,989,832 $ 8,989,832 $ 6,685,658 $ 6,685,658 $ Adopted Adopted Fiscal Year 2006-2007 Schedule of Interfund Transfers (Operating & Capital) - 59 - ---PAGE BREAK--- Actual Actual Actual Estimated Estimated Reserves & Designations 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Operations 1,718,100 $ 1,269,026 $ 1,387,931 $ 1,350,000 $ 1,150,000 $ Emergencies 2,356,200 2,538,051 2,775,861 2,800,000 2,800,000 PERS Retirement 1,457,000 1,757,000 1,207,000 507,000 507,000 Capital Improvement Plan 83,777 1,570,476 2,055,493 520,912 28,301 Accrued Vacation & Sick Leave 1,473,443 1,561,508 1,769,975 1,269,975 769,975 Future Advances to Redevelopment Agency 2,000,000 2,000,000 2,000,000 1,800,000 1,600,000 Economic Fluctuations 10,100,000 8,950,000 6,850,000 4,850,000 4,050,000 Carryover Capital Projects 6,719,560 3,405,458 3,428,985 3,725,000 3,175,000 The City's Financial Policies mandate the level at which most of the major reserves shall be maintained. Major General Fund Reserves / Designations - Comparative Statistics (Fiscal Years 02/03 thru 06/07) Major General Fund Reserves & Designations - 6/30/07 (Estimated) Carryover Capital Projects 22.5% Economic Fluctuations 28.8% Accrued Vacation & Sick Leave 5.5% Future Advances to Redevelopment Agency 11.4% Operations 8.2% Capital Improvement Plan 0.2% PERS Retirement 3.6% Emergencies 19.9% - 61 - ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- - 72 - DEBT MANAGEMENT Debt management is of particular interest to many readers of budget documents. To ensure the City manages its debt appropriately, policies have been adopted and are adhered to. Long-term borrowing is restricted to the funding of capital improvement projects and equipment. Additionally, the term of a respective debt financing shall not exceed the expected useful life of the capital improvement project. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Debt Service Summary: The following is a summary of the City and Redevelopment Agency’s long term debt obligations and outstanding balances as of July 1, 2006 (excluding special assessment debt): Issue Annual Debt Service Outstanding Principal Outstanding Interest Total City: Certificates of Participation 1,608,824 $ 23,040,843 $ 20,073,060 $ 43,113,903 $ Redevelopment Agency: Tax Allocation Bonds 1,776,286 25,640,000 23,889,907 49,529,907 Total City & RDA Debt 3,385,110 $ 48,680,843 $ 43,962,967 $ 92,643,810 $ General Obligation Debt: The City presently has no general obligation debt. Certificates of Participation: The City has two outstanding debt issues totaling $23 million. The certificates, which mature in 2028 and 2032, respectively, are payable from tax increment revenue generated by the Redevelopment Agency and operating revenues of the City. The proceeds of the debt were used to fund various capital improvements to City facilities and provide for deferred street maintenance projects. The City is obligated under the terms of the issuance to appropriate 100% of the annual debt service maturities. In July, 2002 the City received ratings of A+ from Standard and Poors (S&P) and A1 from Moody’s Investors Service. Both rating agencies noted the City’s impressive program of financial risk management and the well-reasoned allocation of reserve levels. In April 2005, S&P reaffirmed the City’s rating at Certificates of Participation FY 07 to Maturity Description Final Maturity Date Amount of Original Issue Outstanding Principal Outstanding Interest Total 1997 Certificates of Participation 2028 13,480,000 $ 13,140,000 $ 12,199,706 $ 25,339,706 $ 2002 Certificates of Participation 2032 11,930,843 9,900,843 7,873,354 17,774,197 Total 25,410,843 $ 23,040,843 $ 20,073,060 $ 43,113,903 $ ---PAGE BREAK--- - 73 - DEBT MANAGEMENT Tax Allocation Bonds: The Redevelopment Agency (RDA) has two outstanding debt issues totaling $25.7 million. The bonds, which mature in 2032 and 2033, respectively, are limited obligations of the RDA and are payable exclusively from tax increment revenues generated in the project area and from reserve accounts set up with proceeds of the bond issues. The proceeds of these bonds were used to finance a variety of projects in the redevelopment project area including renovation of Campbell’s historic performing arts theater and construction of a parking garage in the City’s downtown. The combined issues have annual aggregate debt service payments averaging $1.8 million. In April 2005, Standard and Poors reaffirmed the RDA’s credit rating at BBB. Redevelopment Agency Tax Allocation Bonds – FY 07 to Maturity Description Final Maturity Date Amount of Original Issue Outstanding Principal Outstanding Interest Total 2002 Tax Allocation Bonds 2033 15,300,000 $ 13,495,000 $ 12,217,468 $ 25,712,468 $ 2005 Tax Allocation Bonds 2032 12,300,000 12,145,000 11,672,439 23,817,439 Total City & RDA Debt 27,600,000 $ 25,640,000 $ 23,889,907 $ 49,529,907 $ Annual debt service payments for all long-term debt, excluding special assessments debt for the next five years and beyond is summarized in the following table: Annual Debt Service Payments to Maturity Fiscal Total Total Total Debt Year Principal Interest Service 2007 1,075,000 $ 2,310,111 $ 3,385,111 $ 2008 1,105,000 2,274,156 3,379,156 2009 1,550,000 2,226,336 3,776,336 2010 1,605,000 2,164,947 3,769,947 2011 1,675,000 2,097,840 3,772,840 Thereafter 41,670,843 32,889,577 74,560,420 Total 48,680,843 $ 43,962,967 $ 92,643,810 $ ---PAGE BREAK--- - 74 - DEBT MANAGEMENT Special Assessment Debt: The City acts as agent for the property owners of parcels upon which assessments were made for local improvements. Assessments are levied by the County on the property tax bill. Remaining debt service requirements for special assessment bonds will be paid from future assessments. The City is not liable for the repayment of special assessment district bonds as such bonds are secured by fixed lien assessments on real property. The budgeted FY 07 debt service is $51,430. Special Assessment Debt - FY 07 to Maturity Description Final Maturity Date Amount of Original Issue Outstanding Principal Outstanding Interest Total L.I.D. No. 30 - Series 30 2012 666,471 $ 275,000 $ 77,894 $ 352,894 $ ---PAGE BREAK--- - 75 - GANN APPROPRIATIONS LIMIT Article XIIIB of the California State Constitution as enacted by Proposition 4, the Gann initiative of 1979, mandates a limit on the amount of proceeds of taxes that state and local governments can receive and appropriate (authorize to spend) each year. The purpose of this law is to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. The original Article XIIIB was further modified by Proposition 111 and SB 88 approved by California voters in June of 1990. Proposition 111 allows cities more flexibility in choosing certain inflation and population factors to calculate the limit. The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. Proposition 111 has modified those factors to allow cities to choose either the growth in California Per Capita Income or the growth in non-residential assessed valuation due to new construction in the City. Alternatively, the City could select a population growth factor represented by the population growth in Santa Clara County. Each year the City establishes its appropriations limit for the following fiscal year. The City of Campbell's appropriation limit for fiscal 2006-07 of $41.4 million was adopted by Council via Resolution #10655, June 20, 2006. When a city’s proceeds of taxes (less statutory exclusions) exceed the legal limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be determined at that time. The fiscal 2006-07 calculations indicate the City of Campbell will again be significantly below the appropriations or spending limit. The City’s appropriations limit of $41.4 million for fiscal 2006-07 is approximately $2.0 million higher than the fiscal 2005-06 limit of $39.4 million. For fiscal 2006-07, the City’s proceeds of taxes are projected to be $21.3 million. However, exclusions totaling $1.9 million result in appropriations subject to limitation of $19.4 million, which calculates to be 46.8% of the legal limit. This is $22.0 million or 53.2% under the legal appropriations limit for fiscal 2006-07. Any future amendments to the adopted appropriations from “proceeds of taxes” will be subject to the limit and will be calculated accordingly. As a result of the City’s Gann calculations being so far under the legal limit, restraints on current or future budget deliberations are not contemplated. Appropriations Subject To Limit (Ten Fiscal Years) $5 $10 $15 $20 $25 $30 $35 $40 $45 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 Millions Appropriation Limit Subject to Limit ---PAGE BREAK--- Sales Tax Comparision With Other Jurisdictions FY 02-03 through FY 05-06 Actual Actual Budgeted Budgeted 2002-03 2003-04 2004-05 2005-06 Campbell $8,997,381 10,684,234 $ $9,973,506 $10,000,000 % of General Fund 35% 40% 34% 32% Per Capita 235.53 278.24 260.40 261.10 Cupertino $8,844,000 $8,654,000 $8,400,000 $9,150,000 % of General Fund 31% 32% 28% 30% Per Capita 42.69 165.67 161.02 162.61 Los Gatos $6,928,817 $6,914,526 $7,904,130 $7,313,000 % of General Fund 30% 31% 30% 28% Per Capita 239.52 239.17 273.40 252.38 Milpitas $9,568,227 $10,637,247 $12,411,000 $15,595,000 % of General Fund 19% 21% 28% 24% Per Capita 152.88 169.92 198.30 249.17 Mountain View $14,327,643 $14,158,520 $13,681,290 $15,607,050 % of General Fund 18% 20% 19% 20% Per Capita 198.33 196.65 191.04 216.67 Palo Alto $18,041,000 $18,151,000 $18,100,000 $19,036,000 % of General Fund 14% 19% 18% 18% Per Capita 298.20 299.52 300.66 315.17 San Jose $127,457,000 $130,698,000 $128,488,000 $135,243,000 % of General Fund 20% 25% 20% 24% Per Capita 137.79 141.11 137.71 141.72 Santa Clara $33,814,782 $35,976,144 $35,239,000 $37,053,000 % of General Fund 28% 30% 29% 30% Per Capita 319.61 339.94 326.97 339.61 Sunnyvale $22,766,997 $24,599,057 $25,258,150 $26,133,903 % of General Fund 26% 26% 26% 25% Per Capita 171.41 184.96 189.91 196.50 City $100 $150 $200 $250 $300 $350 $ per Capita San Jose Cupertino Sunnyvale Mountain View Milpitas Los Gatos Campbell Palo Alto Santa Clara FY 05-06 Sales Tax - Per Capita - Comparison with Other Jurisdictions - 76 - ---PAGE BREAK--- Property Tax Revenue Comparison With Other Jurisdictions FY 02-03 through FY 05-06 Actual Actual Budgeted Budgeted 2002-03 2003-04 2004-05 2005-06 Campbell $3,770,090 $3,798,505 $5,657,676 $5,940,000 % of General Fund 15% 14% 20% 19% Per Capita 98.69 99.44 147.72 155.09 Cupertino $3,773,000 $4,000,000 $3,818,000 $4,157,000 % of General Fund 13% 15% 13% 14% Per Capita 72.23 76.68 72.55 77.77 Los Gatos $4,977,119 $5,207,381 $6,856,993 $7,091,890 % of General Fund 21% 23% 26% 27% Per Capita 172.05 180.12 237.18 244.75 Milpitas $10,008,699 $10,015,239 $9,367,000 $13,534,000 % of General Fund 20% 20% 14% 21% Per Capita 159.63 158.92 149.40 211.47 Mountain View $15,110,347 $15,015,950 $15,291,740 $19,749,700 % of General Fund 19% 21% 21% 26% Per Capita 209.16 208.55 213.52 274.18 Palo Alto $13,821,000 $13,740,000 $16,093,000 $16,986,000 % of General Fund 11% 14% 16% 16% Per Capita 228.45 226.73 267.33 281.23 San Jose $95,108,000 $95,649,000 $97,915,000 $143,996,000 % of General Fund 15% 18% 17% 25% Per Capita 102.82 103.27 103.63 150.89 Santa Clara $16,683,604 $16,369,266 $16,271,000 $20,115,000 % of General Fund 14% 13% 13% 16% Per Capita 157.69 154.67 150.97 184.36 Sunnyvale $22,817,384 $23,580,170 $25,258,150 $26,133,903 % of General Fund 26% 24% 25% 25% Per Capita 171.79 177.96 189.91 196.50 City $50 $100 $150 $200 $250 $300 $ per Capita Palo Alto Mountain View Los Gatos Milpitas Sunnyvale Santa Clara Campbell San Jose Cupertino FY 05-06 Property Tax - Per Capita - Comparison with Other Jurisdictions - 77 - ---PAGE BREAK--- Transient Occupancy Tax Comparision With Other Jurisdictions FY 02-03 through FY 05-06 Actual Actual Budgeted Budgeted 2002-03 2003-04 2004-05 2005-06 Campbell $970,000 $882,464 $894,179 $950,000 % of General Fund 4% 3% 3% 3% Per Capita 25.39 22.98 23.35 24.80 Cupertino $1,679,000 $1,633,000 $1,560,000 $1,730,000 % of General Fund 6% 6% 5% 6% Per Capita 32.14 31.30 29.64 32.37 Los Gatos $713,064 $829,026 $868,908 $870,000 % of General Fund 3% 4% 3% 3% Per Capita 24.65 28.68 30.06 30.02 Milpitas $3,960,704 $3,773,974 $3,743,000 $4,301,000 % of General Fund 8% 7% 6% 7% Per Capita 62.40 59.89 59.70 67.20 Mountain View $2,367,384 $2,246,070 $2,136,000 $2,558,490 % of General Fund 3% 3% 3% 4% Per Capita 32.77 31.20 29.83 35.52 Palo Alto $5,333,000 $5,489,000 $6,000,000 $6,173,000 % of General Fund 4% 6% 6% 6% Per Capita 88.15 90.58 99.67 102.20 San Jose $5,800,000 $14,182,931 $14,614,050 $16,125,000 % of General Fund 1% 3% 3% 3% Per Capita 6.27 15.31 15.47 16.90 Santa Clara $7,889,562 $7,159,622 $7,106,000 $7,904,000 % of General Fund 7% 6% 6% 6% Per Capita 74.57 67.65 65.93 72.44 Sunnyvale $5,093,149 $4,751,669 $5,005,500 $5,250,225 % of General Fund 6% 5% 5% 5% Per Capita 38.34 35.73 37.64 39.48 City $20 $40 $60 $80 $100 $120 $ per Capita San Jose Campbell Los Gatos Cupertino Mountain View Sunnyvale Milpitas Santa Clara Palo Alto FY 05-06 Transient Occupancy Tax - Per Capita - Comparison with Other Jurisdictions - 78 - ---PAGE BREAK--- Franchise Fee Revenue Comparision With Other Jurisdictions FY 02-03 through FY 05-06 Actual Actual Budgeted Budgeted 2002-03 2003-04 2004-05 2005-06 Campbell $1,199,010 $1,237,222 $1,262,319 $1,265,000 % of General Fund 5% 5% 4% 4% Per Capita 31.00 32.39 32.96 33.03 Cupertino $7,467,000 $6,872,912 $7,204,000 $7,204,000 % of General Fund 26% 26% 24% 24% Per Capita N/A 131.57 138.09 136.89 Los Gatos $897,158 $930,997 $942,648 $983,450 % of General Fund 4% 4% 4% 4% Per Capita 31.01 32.20 32.61 33.94 Milpitas $2,673,944 $2,649,820 $2,802,000 $2,867,000 % of General Fund 5% 5% 4% 4% Per Capita 42.72 42.34 44.77 45.81 Mountain View $2,764,649 $2,816,470 $2,970,590 $3,165,990 % of General Fund 3% 4% 4% 4% Per Capita 38.74 38.61 39.12 43.95 Palo Alto $317,000 $586,000 $394,000 $460,000 % of General Fund 0.26% 0.60% 0.39% 0.44% Per Capita 5.25 9.67 6.54 7.62 San Jose $32,093,000 $31,763,435 $32,162,000 $33,138,000 % of General Fund 5% 6% 6% 6% Per Capita 34.96 34.29 34.04 34.72 Santa Clara $2,409,630 $2,409,630 $2,770,793 $2,393,000 % of General Fund 2% 2% 2% 2% Per Capita 23.15 22.78 26.18 22.50 Sunnyvale $5,226,408 $5,226,408 $5,520,536 $5,334,051 % of General Fund 6% 6% 6% 5% Per Capita 39.01 39.66 41.51 40.11 City $25 $50 $75 $100 $125 $150 $ per Capita Cupertino Milpitas Mountain View Sunnyvale Los Gatos San Jose Campbell Santa Clara Palo Alto FY 05-06 Franchise Fee Revenue - Per Capita - Comparison with Other Jurisdictions - 79 - ---PAGE BREAK--- Building Permit Revenue Comparision With Other Jurisdictions FY 02-03 through FY 05-06 Actual Actual Budgeted Budgeted 2002-03 2003-04 2004-05 2005-06 Campbell $659,844 $835,638 $986,500 $875,000 % of General Fund 3% 3% 3% 3% Per Capita 17.27 21.76 25.76 22.85 Cupertino $504,000 $616,000 $492,000 $1,285,000 % of General Fund 2% 2% 2% 4% Per Capita 2.43 11.79 9.43 24.42 Los Gatos $677,087 $695,854 $1,028,176 $1,250,000 % of General Fund 3% 3% 4% 5% Per Capita 23.41 24.07 35.56 43.14 Milpitas $1,270,407 $1,460,360 $1,651,000 $2,475,000 % of General Fund 3% 3% 3% 6% Per Capita 20.30 23.33 26.38 39.54 Mountain View $1,174,524 $1,578,980 $1,487,640 $1,647,640 % of General Fund 2% 2% 2% 2% Per Capita 16.26 21.93 20.77 22.87 Palo Alto $4,429,000 $2,758,000 $3,780,000 $4,245,000 % of General Fund 4% 3% 4% 4% Per Capita 73.21 45.51 623.79 70.28 San Jose $5,800,000 $7,565,987 $6,384,000 $7,389,120 % of General Fund 1% 1% 1% 1% Per Capita 6.27 8.17 6.76 7.74 Santa Clara $1,715,812 $1,605,240 $1,850,000 $1,900,000 % of General Fund 1% 1% 2% 2% Per Capita 16.22 15.17 17.17 17.41 Sunnyvale $940,146 $1,549,278 $1,623,783 $1,713,091 % of General Fund 1% 2% 2% 2% Per Capita 7.13 11.65 12.21 12.88 City $25 $50 $75 $100 $ per Capita Palo Alto Los Gatos Milpitas Cupertino Mountain View Campbell Santa Clara Sunnyvale San Jose FY 05-06 Building Permit Revenue - Per Capita Comparison with Other Jurisdictions - 80 -