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Home My WebLink About55A - RESO - ESTABLISH APPROPRIATION LIMITREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 15, 2013 TITLE: RESOLUTION ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FY 2013-14 ITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2Id Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a resolution establishing the appropriation limit for the fiscal year 2013-14. 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, 2014. As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds of Taxes" is calculated to be $886,876,666 (Exhibit A) for FY 2013-14. This represents the permitted growth rate factor of 26.3634 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 2013-14 anticipated revenues from "Proceeds of Taxes" and "Non- Proceeds of Taxes"; and Exhibit D computes the fiscal year 2013-2014 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 2013-14 "Proceeds of Taxes" revenue will be $750,208,218 below the allowable limit. FISCAL IMPACT There is no fiscal impact associated with this action. Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibits: A. Computation of Appropriation Limit B. Calculation of Permitted Growth Rate C. Schedule to Categorize Anticipate Revenues D. Appropriation Subject to Limitation 55A-1 55A-2 EXHIBIT A COMPUTATION OF APPROPRIATION LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2014 Appropriation Limit: 1978-79 Base Year Permitted Growth Rate in appropriation (Exhibit B) Appropriation Limit for the Fiscal Year Ending June 30, 2014 55A-3 33,640,451 26.3634 $ 886,876,666 55A-4 EXHIBIT B CALCULATION OF PERMITTED GROWTH RATE IN APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2014 Factor 2012-13: California CPI: 5.12% Converted into a Factor 1.0512 Population Growth: 0.78% Converted into a Factor: 1.0078 Rates of Change: 1.0512 x 1.0078 1.0594 Multiplied by 2012-13 Combined Index 24.8852 Combined Index 1979-80 through 2013-2014 26.3634 55A-5 55A-6 EXHIBIT C SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES FOR FISCAL YEAR ENDING JUNE 30, 2014 TAXES: Property Tax Sales Tax Hotel Visitors' Tax Business Tax Documentary Stamp Tax Utility Users'Tax Total Taxes FROM STATE: State Gas Tax State Cost Reimbs State Grants AQMD AB 2766 Total State OTHER GOVERNMENT: Community Development (CDBG) Homeowner Prop Tax Subvention UASI Grant Housing (Section 8) W IA Measure M, Street Grants, Gas Tax Exch Traffic Safety and Traffic System Management Grants Civic Center and Park Program Income Other Federal Grants: HOME, HOPWA Total Other Government PROCEEDS NON-PROCEEDS OF TAXES OF TAXES TOTALS $ 63,259,000 $ - $ 63,259,000 42,646,000 - 42,646,000 7,850,000 - 7,850,000 11,000,000 - 11,000,000 660,000 - 660,000 24,136,000 - 24,136,000 149,551,000 - 149,551,000 230,000 230,000 10,345,865 205,000 149,000 414,000 11,113,865 6,380,500 8,908,806 29,946,015 3,441,605 20,225,626 825,240 2,874,884 1,015,000 2,715,425 76, 333,101 10,345,865 205,000 149,000 414,000 11,113,865 6,380,500 230,000 8,908,806 29,946,015 3,441,605 20,225,626 825,240 2,874,884 1,015,000 2,715,425 76, 563,101 55A-7 Exhibit C Continued REVENUE LOCALLY RAISED: Licenses and Permits Franchise Fees Fines and Forfeitures Charges for Services Parks and Recreations From Use of Property Others Others - Inter-Agency Total Locally Raised OTHER MISCELLANEOUS: Donation Sale of Junk and Property Attorney Reimbursements Expense Reimbursements Indirect Cost Recovery From Prior Year Fund Balances Interfund Transfers Total Other Miscellaneous FROM USE OF MONEY: Earnings on Investment TOTAL REVENUES PROCEEDS OF TAXES 145,015 NON-PROCEEDS OF TAXES 3,570,000 7,979,150 7,112,000 9,426,000 856,635 16,885,515 86,000 7,467,000 53,382,300 TOTALS 3,570,000 7,979,150 7,112,000 9,426,000 856,635 16,885,515 86,000 7,467,000 53, 382, 300 125,000 125,000 6,000 6,000 979,000 979,000 2,587,050 2,587,050 2,072,000 2,072,000 15,543,487 15,543,487 3,473,475 3,473,475 24,786,012 24,786,012 189,970 334,985 $ 149,926,015 $ 165,805,248 $ 315,731,263 55A-8 EXHIBIT D APPROPRIATION SUBJECT TO LIMITATION FOR FISCAL YEAR ENDING JUNE 30, 2014 Proceeds from taxes Less: Exclusions: Capital outlay Appropriation subject to limitation Current year limit Over(under) limit $ 149,926,015 13,257,567 $ 136,668,448 886,876,666 $ (750,208,218) 55A-9 55A-10 les: 6/19/13 RESOLUTION NO. 2013- 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 2013-2014 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 1987, 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 II 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 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. Resolution No. 2013- 55A-11 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 before the City Council at its regularly scheduled meeting of July 15, 2013. H. The Executive Director, Finance and Management Services of the City of Santa Ana, has determined the City's appropriation limit for fiscal year 2013-2014 in accordance with 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 July 1, 2013 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 2013-2014 is hereby found and determined to be $886,876,666. 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. Resolution No. 2013- 55A-12 ADOPTED this day of , 2013. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Lisa E. Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2013- to be the original resolution adopted by the City Council of the City of Santa Ana on July , 2013. Date: Clerk of the Council City of Santa Ana 55A-1 3 Resolution No. 2013- 55A-14