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Home My WebLink About55A - RESOLUTION NO. 2004-047 REQUEST FOR COUNCIL ACTION 8 CITY COUNCIL MEETING DATE: ~ ~ CLERK OF COUNCIL USE ONLY: JULY 6, 2004 TITLE: RESOLUTION ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FY 2O°(2A2 ~. - CITY MANAGER APPROVED 0 As Recommended 0 As Amended 0 Ordinance on 1st Reading 0 Ordinance on 2nd Reading 0 Implementing Resolution 0 Set Public Hearing For CONTINUED TO ÐY FILE NUMBER RECOMMENDED ACTION Adopt a resolution establishing the appropriation limit for the fiscal year 2004-05. DISCUSSION 8 The State of California Constitution includes provisions which impose a limit ("the Gann Limit") on tax proceeds that may be appropriated for expenditure by a local government in any given fiscal year and requires that cities establish this limit by resolution. Adoption of the subject resolution is necessary for compliance with these provisions for the fiscal year ending June 30, 2005. As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds of Taxes" is calculated to be $625,402,896 (Exhibit A) for FY 2004-05. This represents the permitted growth rate factor of 18.5908 times the adjusted base year (1978-1979) appropriation limit of $33,640,451. Exhibit B identifies the factors used to determine the allowable increase; Exhibit C categorizes FY 2004-05 anticipated revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit D computes the fiscal year 2004-2005 appropriations subject to this limitation and identifies the difference between the limit and the budgeted appropriation. As demonstrated in Exhibit D, the City's anticipated FY 2004-05 "Proceeds of Taxes" revenue will be $530,905,941 below the allowable limit. FISCAL IMPACT 8 impact associated with this action. R 0 ma Executive Director Finance & Management Services Agency 55A-1 EXHIBIT A COMPUTATION OF APPROPRIATION LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2005 Appropriation Limit: 1978-79 Base Year Permitted Growth Rate in appropriation (Exhibit B) Appropriation Limit for the Fiscal Year Ending June 30, 2005 55A-2 $ 33,640,451 18.5908 $ 625,402,896 8 EXHIBIT B CALCULATION OF PERMITTED GROWTH RATE IN APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2005 Factor 2004-05: California CPI: 3.28% Converted into a Factor 1.0328 Population Growth: 1.42% Converted into a Factor: 1.0142 Rates of Change: 1.0328 x 1.0142 1.0474 Multiplied by 2003-04 Combined Index 17.7495 8 Combined Index 1979-80 through 2004-05 18.5908 8 55A-3 EXHIBIT C SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES FOR FISCAL YEAR ENDING JUNE 30, 2005 REVENUE TAXES: Property Sales Hotel Visitors' Tax Business Documentary Stamp Utility Users' Tax Total Taxes FROM STATE: State Motor Vehicle State Gas Tax State Cost Reimbursements State Grants AQMD AB 2766 Total State OTHER GOVERNMENT: Community Development (CDBG) Homeowners Prop tax subvention Housing (HUD) WIA Measure M, Gas Tax Exchange HOPWA Empowerment Zone (HUD) County of Orange Civic Center and Centennial Park Other Federal Grants Total Other Government PROCEEDS OF TAXES $ 21,277,975 $ 42,250,115 5,095,925 7,637,435 1,234,500 26,453,450 103,949,400 20,477,880 20,477,880 275,335 275,335 55A-4 NON-PROCEEDS OF TAXES 5,417,455 75,000 0 375,585 5,868,040 8,675,280 29,994,470 3,211,055 6,7 43,410 1,413,000 1,924,100 2,940,900 565,130 55,467,345 TOTALS $ 21,277,975 42,250,115 5,095,925 7,637,435 1,234,500 26,453,450 1 03,949,400 20,477,880 5,417,455 75,000 0 375,585 26,345,920 8,675,280 275,335 29,994,470 3,211,055 6,743,410 1,413,000 1,924,100 2,940,900 565,130 55,742,680 8 Exhibit C Continued PROCEEDS NON-PROCEEDS REVENUE OF TAXES OF TAXES TOTALS LOCALLY RAISED: Licenses and Permits 4,424,315 4,424,315 Franchise Fees 5,570,360 5,570,360 Development Fees 1,186,735 1,186,735 Fines and Forfeitures 3,954,290 3,954,290 Charges for Services 4,232,170 4,232,170 Parks and Recreations 1,272,705 1 ,272,705 From Use of Property 10,823,330 10,823,330 Others 3,406,630 3,406,630 Refuse Program Savings 1,570,000 1,570,000 Total Locally Raised 36,440,535 36,440,535 8 OTHER MISCELLANEOUS: Sale of Junk and Property 51,365 51,365 Expense Reimbursements 2,335,665 2,335,665 Indirect Cost Recovery 3,200,000 3,200,000 From Prior Year Fund Balances 3,354,800 3,354,800 Interfund Transfers 22,099,370 22,099,370 Total Other Miscellaneous 31,041,200 31,041,200 FROM USE OF MONEY: Earnings on Investment TOTAL REVENUES 8 2,285,466 $ 126,988,081 $ 55A-5 1,757,459 4,042,925 130,574,579 $ 257,562,660 Proceeds from taxes Less: Exclusions: Capital outlay EXHIBIT D APPROPRIATION SUBJECT TO LIMITATION FOR FISCAL YEAR ENDING JUNE 30, 2005 Appropriation subject to limitation Current year limit Over(under) limit 55A-6 $ 103,949,400 $ ~,~??!1~§N 94,496,955 625,402,896 ...~.. (S.3.q!~qS.,~~1) 8 8 8 bk:6/29/04 RESOLUTION NO. 2004-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2004-2005 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Article XI/IB of the Constitution of the State of California, adopted by the voters of the State of California in November 1978, imposes upon State and local government the obligation to limit each fiscal year's appropriations to those established in fiscal year 1978-79 as adjusted for by inflation and population, together with other specified changes required or permitted. B. In June of 1990, the voters of the State of California approved Proposition 111 which amended Article XI/I B to establish the limit originally calculated for fiscal year 1986-87 as a new adjustment base and to change the definition of the cost of living to be either the percentage change in California per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year for the jurisdiction due to the addition of local non-residential new construction. C. Proposition 111 further modified Article XI/I B requirements by making certain capital outlay, debt service, emergency and court ordered expenditures not subject to the limit and by allowing expenditures in excess of one year's limit to be offset by underexpenditures in an immediately following year. D. The City of Santa Ana has opted to use as the inflation adjustment factor, the percentage change in the California per capita personal income from the preceding year. E. The City of Santa Ana has opted to use as the population adjustment factor, the County's percentage change in population from the preceding year. 55A-7 The City Council hereby makes these findings and determinations, and consents for fiscal year 2004-2005 to the Community Redevelopment Agency of the City of Santa Ana making said payments as it deems warranted. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of ,2004. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers NOES: Council members ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 55A-8 8 8 8 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2004-047 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55A-9 55A-10