HomeMy WebLinkAbout55B - APPROPRIATION LIMIT FY 06/07
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
JUNE 5, 2006
TITLE:
APPROVED
o As Recommended
D As Amended
o Ordinance on 151 Reading
o Ordinance on 2"d Reading
D Implementing Resolution
D Set Public Hearing For
RESOLUTION ESTABLISHING THE
APPROPRIATION LIMIT OF THE
CITY OF SANTA ANA FOR
FY 2006L9~~
CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Adopt a resolution establishing the appropriation limit for the fiscal
year 2006-07
DISCUSSION
The State of California Constitution includes provisions, which impose a
limit ("the Gann Limit") on tax proceeds that may be appropriated for
expenditures by a local government in any given fiscal year and requires
the 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, 2007.
As detailed in the exhibits to the subject resolution, the City's spending
limitations from "Proceeds of Taxes" is calculated to be $697,830,787
(Exhibit A) for FY 2006-07. This represents the permitted growth rate
factor of 20.7438 times the adjusted base year (1978-1978) appropriation
limit of $33,640,451. Exhibit B identifies the factors used to determine
the allowable increase; Exhibit C categorizes FY 2006-07 anticipated
revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit
D computes the fiscal year 2006-2007 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 2006-07 "Proceeds of Taxes" revenue will be $631,189,406
below the allowable limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
~~~~
A.. ~rancisco Gutierrez
IV Executive Director
Finance & Management Services Agency
558-1
Appropriation Limit:
1978-79 Base Year
Permitted Growth Rate
in appropriation (Exhibit B)
EXHIBIT A
COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2007
Appropriation Limit for the
Fiscal Year Ending June 30, 2007
558-2
$
33,640,451
20.7438
$
697,830,787
EXHIBIT B
CALCULATION OF PERMITTED GROWTH RATE IN
APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2007
Factor 2005-06:
California CPI:
Converted into a Factor
Population Growth:
Converted into a Factor:
Rates of Change: 1.0396 x 1.0083
Multiplied by 2005-06 Combined Index
Combined Index 1979-80 through 2006-07
558-3
3.96%
1.0396
0.83%
1 .0083
1.0482
19.7899
20.7438
EXHIBIT C
SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2007
PROCEEDS NON-PROCEEDS
REVENUE OF TAXES OF TAXES TOTALS
TAXES:
Property Tax $ 48,465,000 $ $ 48,465,000
Sales Tax 47,348,700 47,348,700
Hotel Visitors' Tax 5,875,700 5,875,700
Business Tax 8,588,000 8,588,000
Documentary Stamp Tax 1,575,000 1,575,000
Utility Users'Tax 27,282,520 27,282,520
Total Taxes 139,134,920 139,134,920
FROM STATE:
State Motor Vehicle 1,708,100 1,708,100
State Gas Tax 6,968,345 6,968,345
State Park Bond 900,000 900,000
State Cost Reimbs 59,000 59,000
State Grants 102,750 102,750
AQMD AB 2766 , TCR AB2928 1,352,340 1,352,340
Total State 1,708,100 9,382,435 11,090,535
OTHER GOVERNMENT:
Community Development (CDBG) 7,972,175 7,972,175
Homeowners Prop tax subve 272,000 272,000
Housing (HUD) 30,423,145 30,423,145
WIA 3,522,210 3,522,210
Measure M, Street Grand, Gas Tax Exch 66,470,725 66,470,725
HOPW A 1,360,500 1,360,500
Empowerment Zone 1,705,000 1,705,000
County of Orange 175,000 175,000
Civic Center and Park 3,553,990 3,553,990
Other Federal Grants 844,800 844,800
Total Other Government 272,000 116,027,545 116,299,545
558-4
Exhibit C
Continued
REVENUE
LOCALLY RAISED:
Licenses and Permits
Franchise Fees
Development Fees
Fines and Forfeitures
Charges for Services
Parks and Recreations
From Use of Property
Others
Others - Inter-Agency
Total Locally Raised
OTHER MISCELLANEOUS:
Sale of Junk and Property
Attorney Reimbursements
Expense Reimbursements
Indirect Cost Recovery
From Prior Year Fund Balances
Refuse Program Saving
Refuse Contract Program Surcharge
Interfund Transfers
Total Other Miscellaneous
FROM USE OF MONEY:
Earnings on Investment
TOTAL REVENUES
PROCEEDS
OF TAXES
246,296
$
141,361,316 $
558-5
NON-PROCEEDS
OF TAXES
5,377,668
2,628,500
2,537,651
5,461,500
6,645,720
1,315,600
11,405,800
1,636,690
7,307,180
44,316,309
o
28,100
1,062,290
1,848,802
2,850,000
15,736,069
1,500,000
2,522,365
12,901,290
38,448,916
918,224
209,093,429 $
TOTALS
5,377,668
2,628,500
2,537,651
5,461,500
6,645,720
1,315,600
11,405,800
1,636,690
7,307,180
44,316,309
28,100
1,062,290
1,848,802
2,850,000
15,736,069
1,500,000
2,522,365
12,901,290
38,448,916
1,164,520
350,454,745
o
EXHIBIT 0
APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2007
Proceeds from taxes
Less: Exclusions:
Capital outlay
Appropriation subject to limitation
Current year limit
Over(under) limit
558-6
$
141,361,316
74,719,935
$
66,641,381
697,830,787
$
(631,189,406)
155:5/25/06
RESOLUTION NO. 2006-
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
2006-2007
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 XIIIB 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 XIII 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 XIII 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.
F. Division 9 of Title I of the Government Code of the State of California
(commencing with section 7900), as enacted by 1980 Statutes, Chapter
1205, effective January 1, 1981, directs the governing body of each local
Resolution No. 2006-XXX
Page 1 of 3
558-7
jurisdiction each year to, by resolution, establish its appropriations limit
and make other necessary determinations for the following fiscal year
pursuant to Article XIIIB of the California Constitution at a regularly
scheduled meeting or noticed special meeting. Fifteen days prior to the
meeting documentation used in the determination of the appropriations
limit and other necessary determinations shall be available to the public.
G. This matter came on before the City Council at its regularly scheduled
meeting of June 5, 2006.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2006-2007 in accordance with the said provisions of the Constitution and
laws of the State of California and the documentation used in said
determination has been available to the public since not later than May 25,
2006 in the office of the Executive Director, Finance & Management
Services.
Section 2. Based upon the above referenced facts and all facts specified in
the accompanying Request for Council Action and its attachments, and each of them,
the appropriation limit of the City of Santa Ana for fiscal year 2006-2007 is hereby found
and determined to be $697,830,787.00.
Section 3. 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
,2006.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Laura Sheedy
Assistant City Attorney
Resolution No. 2006-XXX
Page 2 of 3
558-8
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2006-XXX to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Resolution No. 2006-XXX
Page 3 of 3
-
Clerk of the Council
City of Santa Ana
558-9
558-10