HomeMy WebLinkAbout55C - RESO APPR LIMIT 07/08REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 2, 2007
TITLE:
RESOLUTION ESTABLISHING THE
APPROPRIATION LIMIT OF THE CITY
OF SANTA ANA FOR
FY 2007-08
~~~~
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1~' Reading
^ Ordinance on Intl Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Adopt a resolution establishing the appropriation limit for the fiscal
year 2007-08
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, 2008.
As detailed in the exhibits to the subject resolution, the City's spending
limitations from "Proceeds of Taxes" is calculated to be $734,815,099
(Exhibit A) for FY 2007-08. This represents the permitted growth rate
factor of 21.8432 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 2007-08 anticipated
revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit
D computes the fiscal year 2007-2008 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 2007-
08 "Proceeds of Taxes" revenue will be $600,037,457 below the allowable
limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
rancisco Gutierrez
xecutive Director
Finance & Management Services Agency
55C-1
EXHIBIT A
COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2008
Appropriation Limit:
1978-79 Base Year
Permitted Growth Rate
in appropriation (Exhibit B)
Appropriation Limit for the
Fiscal Year Ending June 30, 2008
33,640,451
21.8432
$ 734,815,099
55C-2
EXHIBIT B
CALCULATION OF PERMITTED GROWTH RATE IN
APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2008
Factor 2007-08:
California CPI: 4.42%
Converted into a Factor 1.0442
Population Growth: 0.84%
Converted into a Factor: 1.0084
Rates of Change: 1.0442 x 1.0084 1.0530
Multiplied by 2006-07 Combined Index 20.7438
Combined Index 1979-80 through 2007-08 21.8432
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EXHIBIT C
SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2008
REVENUE
TAXES:
Property Tax
Sales Tax
Hotel Visitors' Tax
Business Tax
Documentary Stamp Tax
Utility Users'Tax
Total Taxes
FROM STATE:
State Motor Vehicle
State Gas Tax
State Cost Reimbs
State Grants
AOMD AB 2766 , TCR A62928
Total State
OTHER GOVERNMENT:
Community Development (CDBG)
Section 108
Homeowners Prop tax subve
UASI Grant
Housing (HUD)
W IA
Measure M, Street Grand, Gas Tax Exch
HOPWA
Civic Center and Park
Other Federal Grants
Total Other Government
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES TOTALS
54,667,910 $ $ 54,667,910
48,525,605 48,525,605
7,477,707 7,477,707
9,608,703 9,608,703
950,000 950,000
28,679,040 28,679,040
149,908,965 149,908,965
2,231, 362 2, 231, 362
6,481,840 6,481,840
602,370 602,370
442,820 442,820
6,354,615 6,354,615
2, 231, 362 13, 881,645 16,113, 007
7,384,680 7,384,680
14, 000, 000 14, 000, 000
272,200 272,200
4,186,000 4,186,000
27,613,510 27,613,510
4,183,515 4,183,515
36,221,500 36,221,500
1,371,940 1,371,940
4,684,375 4,684,375
639,130 639,130
272, 200 100, 284, 650 100, 556, 850
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Exhibit C
Continued
PROCEEDS NON-PROCEEDS
REVENUE OF TAXES OF TAXES TOTALS
LOCALLY RAISED:
Licenses and Permits 4,408,016 4,408,016
Franchise Fees 2,727,425 2,727,425
Development Fees 2,152,108 2,152,108
Fines and Forfeitures 6,100,562 6,100,562
Charges for Services 7,067,109 7,067,109
Parks and Recreations 1,425,713 1,425,713
From Use of Property 11,470,350 11,470,350
Others 1, 230, 308 1, 230, 308
Others-Inter-Agency 8,957,180 8,957,180
Total Locally Raised 45,538,771 45,538,771
OTHER MISCELLANEOUS:
Sale of Junk and Property 28,265 28,265
Attorney Reimbursements 1,115,405 1,115,405
Expense Reimbursements 1,602,062 1,602,062
Indirect Cost Recovery 2,856,000 2,856,000
From Prior Year Fund Balances 9,260,490 9,260,490
Refuse Program Saving 1,239,325 1,239,325
Refuse Contract Program Surcharge 2,872,365 2,872,365
Interfund Transfers 12,110,565 12,110,565
Total Other Miscellaneous 0 31,084,477 31,084,477
FROM USE OF MONEY:
Earnings on Investment
1, 034, 917
1,620,758 2,655,675
TOTAL REVENUES $ 153,447,444 $ 192,410,301 $ 345,857,745
55C-5
EXHIBIT D
APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2008
Proceeds from taxes
Less: Exclusions:
Capital outlay
Appropriation subject to limitation
Current year limit
Over(under) limit
153,447,444
18,669,801
134,777,643
734,815,099
$ (600,037,457)
55C-6
Iss:06/06/07
RESOLUTION NO. 2007-
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
2007-2008
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
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.
Resolution No. 2004-XXX
Page 1 of 2
55C-7
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 focal
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 July 2, 2007.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2007-2008 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 June
18, 2007 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 2007- 2008 is hereby
found and determined to be $734,815,099.
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 , 2007.
Miguel A. Pulido
Mayor
Resolution No. 2004-XXX
Page 2 of 2
55C-8
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Laura Sheedy
Assistant City Attorney
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. 2007-XXX 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
Resolution No. 2004-XXX
Page 3 of 2
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