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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 18, 2019 <br />TITLE: <br />ADOPT A RESOLUTION ESTABLISHING <br />THE APPROPRIATION LIMIT OF <br />THE CITY OF SANTA ANA FOR <br />FY 2019-20, AS REQUIRED BY STATE LAW <br />(STRATEGIC PLAN NO. 4, 1D) <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 161 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Adopt a resolution establishing the appropriation limit for the fiscal year 2019-20, as required by <br />State law. <br />DISCUSSION <br />The State of California Constitution includes various provisions, which impose a limit ("the GANN <br />Limit") on tax proceeds that may be appropriated for expenditures by a local government in any <br />given fiscal year and requires the cities establish this limit by resolution. Adoption of the subject <br />resolution is necessary for compliance with these provisions for the fiscal year ending June 30, <br />2020. <br />As detailed in the exhibits to the subject resolution, the City's spending limitation from "Proceeds <br />of Taxes" is calculated to be $1,132,077,815 (Exhibit 1) for the fiscal year 2019-20. This represents <br />the permitted growth rate factor of 1.0415 times the fiscal year 2018-19 appropriations limit of <br />$1,086,968,617. The funds constrained by the appropriations limit include the General Fund, the <br />Capital Outlay Fund, and Special Revenue Funds. <br />Additionally, Exhibit 1 identifies the factors used to determine the allowable increase from the prior <br />year; Exhibit 2 categorizes FY 2019-20 anticipated revenues from "Proceeds of Taxes" and "Non - <br />Proceeds of Taxes'; and Exhibit 3 computes the fiscal year 2019-20 appropriations subject to this <br />limitation and also identifies the difference between the limit and the budgeted appropriation. As <br />demonstrated in Exhibit 3, the City's anticipated fiscal year 2019-20 appropriation subject to <br />limitation is $245,301,295, which is $886,776,520 below the GANN Limit (allowable limit). <br />55A-1 <br />