HomeMy WebLinkAbout55B - RESO - APPROPRIATION LIMIT FY 2009-10REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 6, 2009
TITLE:
RESOLUTION ESTABLISHING THE
APPROPRIATION LIMIT OF THE CITY
OF SANTA ANA FOR
FY 2009-10
_f ~
~~~
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1St Reading
^ Ordinance on 2nd Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Adopt a resolution establishing the appropriation limit for the fiscal
year 2009-10
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, 2010.
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 $786,900,610
(Exhibit A) for FY 2009-10. This represents the permitted growth rate
factor of 23.3915 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 2009-10 anticipated
revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit
D computes the fiscal year 2009-2010 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 2009-
10 "Proceeds of Taxes" revenue will be $657,767,300 below the allowable
limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
~,
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
55B-1
EXHIBIT A
COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2010
Appropriation Limit:
1978-79 Base Year
Permitted Growth Rate
in appropriation (Exhibit B)
Appropriation Limit for the
Fiscal Year Ending June 30, 2010
33,640,451
23.3915
$ 786,900,610
55B-2
EXHIBIT B
CALCULATION OF PERMITTED GROWTH RATE IN
APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2010
Factor 2009-10:
California CPI: 0.62%
Converted into a Factor 1.0062
Population Growth: 1.02%
Converted into a Factor: 1.0102
Rates of Change: 1.0062 x 1.0102 1.0165
Multiplied by 2008-09 Combined Index 23.0118
Combined Index 1979-80 through 2009-2010 23.3915
55B-3
EXHIBIT C
SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2010
PROCEEDS NON-PROCEEDS
REVENUE OF TAXES OF TAXES TOTALS
TAXES:
Property Tax $ 57,150,437 $ $ 57,150,437
Sales Tax 38,108, 715 38,108, 715
Hotel Visitors' Tax 6,035,945 6,035,945
Business Tax 9,304,760 9,304,760
Documentary Stamp Tax 575,000 575
000
Utility Users'Tax 28,098,975 ,
28,098,975
Total Taxes 139,273,832 139,273,832
FROM STATE:
State Motor Vehicle 1,015,380 1,015
380
State Gas Tax 5,811,325 ,
5,811
325
Prop 1B 6,954,000 ,
6,954
000
State Cost Reimbs 231,500 ,
231
500
State Grants 277,071 ,
277
071
AOMD AB 2766 , TCR A62928 5,101, 938 ,
5,101
938
Total State 1,015,380 18,375,834 ,
19,391,214
OTHER GOVERNMENT:
Community Development (CDBG) 7,198,600 7,198
600
Homeowners Prop tax subve 154,700 ,
154
700
UASI Grant 20,263,268 ,
20,263
268
Housing (HUD) 30,588,340 ,
30,588
340
WIA
Measure M, Street Grand, Gas Tax Exch 4,113,670
41,159,419 ,
4,113,670
41
159
419
HO PWA 1,402, 000 ,
,
1,402, 000
ARRA 2009
Civic Center and Park 5,810,204 5,810,204
Other Federal Grants 5,513,202 5,513,202
Total Other Government
154,700 4,499,776
120,548,479 4,499,776
120,703,179
55B-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
0
433,318
NON-PROCEEDS
OF TAXES
4, 707, 362
2,714,210
1, 576, 966
8,484,872
10,112,576
1,699,600
14,151,450
1, 793,279
9,693,180
54,933,495
38,448
1,171,175
1,529,415
2, 515, 000
36, 954, 913
1,239,325
5, 047, 365
42,263,865
90, 759, 506
997,718
TOTALS
4,707,362
2,714,210
1, 576, 966
8,484,872
10,112,576
1, 699,600
14,151,450
1,793,279
9,693,180
54,933,495
38,448
1,171,175
1,529,415
2,515,000
36, 954, 913
1,239, 325
5,047,365
42,263,865
90, 759, 506
1,431,036
$ 140,877,230 $ 285,615,032 $ 426,492,262
55B-5
EXHIBIT D
APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2010
Proceeds from taxes
Less: Exclusions:
Capital outlay
Appropriation subject to limitation
Current year limit
Over(under) limit
$ 140,877,230
11, 743, 920
$ 129,133,310
786,900,610
$ (657,767,300)
55B-6
Iss:6/16/09
RESOLUTION NO. 2009-
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
2009-2010
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 jurisdiction's local assessment roll from the
preceding year 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 under expenditures 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.
55B-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 establish its appropriations limit and make other
necessary determinations for the following fiscal year pursuant to Article
XIIIB of the California Constitution, by resolution, 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 6, 2009.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2009-2010 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
19, 2009 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 2009-2010 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
2009.
Miguel A. Pulido
Mayor
55B-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. 2009-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
55B-9
55B-10