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Home My WebLink About55A - RESO - APPROPRIATION LIMIT FY 08-09REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: RESOLUTION ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FY 2008-09 CIT MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15t Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution establishing the appropriation limit for the fiscal year 2008-09. DISCUSSION The State of California Constitution includes p limit ("the Gann Limit") on tax proceeds that expenditures by a local government in any given the cities establish this limit by resolution. resolution is necessary for compliance with these year ending June 30, 2009. rovisions, which impose a may be appropriated for fiscal year and requires Adoption of the subject provisions for the fiscal As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds of Taxes" is calculated to be $774,127,330 (Exhibit A) for FY 2008-09. This represents the permitted growth rate factor of 23.0118 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 2008-09 anticipated revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit D computes the fiscal year 2008-2009 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 2008- 09 "Proceeds of Taxes" revenue will be $632,289,301 below the allowable limit. FISCAL IMPACT There is no fiscal impact associated with this action. ~G,G~z~u - Pamela Arends-King Assistant Director Finance & Management Services Agency~~ 55A-1 EXHIBIT A COMPUTATION OF APPROPRIATION LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2009 Appropriation Limit: 1978-79 Base Year Permitted Growth Rate in appropriation (Exhibit B) Appropriation Limit for the Fiscal Year Ending June 30, 2009 33,640,451 23.0118 $ 774,127,330 55A-2 EXHIBIT B CALCULATION OF PERMITTED GROWTH RATE IN APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2009 Factor 2008-09: California CPI: 4.29% Converted into a Factor 1.0429 Population Growth: 1.02°/a Converted into a Factor: 1.0102 Rates of Change: 1.0442 x 1.0084 1.0535 Multiplied by 2007-08 Combined Index 21.8432 Combined Index 1979-80 through 2008-09 23.0118 55A-3 EXHIBIT C SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES FOR FISCAL YEAR ENDING JUNE 30, 2009 PROCEEDS NON-PROCEEDS REVENUE OF TAXES OF TAXES TOTALS TAXES: Property Tax $ 57,785,555 $ $ 57,785,555 Sales Tax 47,345,595 47,345,595 Hotel Visitors' Tax 7,395,000 7,395,000 Business Tax 10,005,120 10,005,120 Documentary Stamp Tax 757,500 757,500 Utility Users'Tax 28,240,175 28,240,175 Total Taxes 151,528,945 151,528,945 FROM STATE: State Motor Vehicle 1,625,065 1,625,065 State Gas Tax 6,622,695 6,622,695 State Cost Reimbs 330,615 330,615 State Grants 10,429,985 10,429,985 AQMD AB 2766 , TCR AB2928 422,965 422,965 Total State 1,625,065 17,806,260 19,431,325 OTHER GOVERNMENT: Community Development (CDBG) 7,123,855 7,123,855 Homeowners Prop tax subve 277,020 277,020 UASI Grant 0 Housing (HUD) 33,143,150 33,143,150 WIA 4,205,900 4,205,900 Measure M, Street Grand, Gas Tax Exch 64,703,565 64,703,565 HOPWA 0 Civic Center and Park 4,893,320 4,893,320 Other Federal Grants 194,000 194,000 Total Other Government 277,020 114,263,790 114,540,810 55A-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 PROCEEDS OF TAXES 0 NON-PROCEEDS OF TAXES 3,838,825 2,546,490 741, 980 7,175,820 7,564,911 1,583,290 12,175,675 2,719,915 7,957,180 46, 304, 086 26, 340 1,171,175 1,631,505 2,913,120 35, 869,155 1,239,325 2, 872, 365 39,496,020 85,219,005 TOTALS 3,838,825 2,546,490 741,980 7,175,820 7, 564, 911 1,583,290 12,175,675 2,719,915 7,957,180 46, 304, 086 26, 340 1,171,175 1,631,505 2,913,120 35,869,155 1,239,325 2,872,365 39,496,020 85,219,005 730,599 1,428,381 2,158,980 TOTAL REVENUES $ 154,161,629 $ 265,021,522 $ 419,183,151 55A-5 EXHIBIT D APPROPRIATION SUBJECT TO LIMITATION FOR FISCAL YEAR ENDING JUNE 30, 2009 Proceeds from taxes Less: Exclusions: Capital outlay Appropriation subject to limitation Current year limit Over(under) limit $ 154,161,629 12,323,600 $ 141,838,029 774,127,330 $ (632,289,301) 55A-6 Iss:6/24/08 RESOLUTION NO. 2008- 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 2008-2009 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 55A-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 local 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 7, 2008. H. The Executive Director, Finance and Management Services of the City of Santa Ana has determined the City's appropriation limit for fiscal year 2008-2009 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 20, 2008 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 2008-2009 is hereby found and determined to be $774,127,330.00. 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 , 2008. Miguel A. Pulido Mayor Resolution No. 2004-XXX Page2of2 55A-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 attached Resolution No. 2008-XXX to Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2004-XXX Page3of2 Council, do hereby attest to and certify the be the original resolution adopted by the City 55A-9 55A-10