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<br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />8 CITY COUNCIL MEETING DATE: <br /> <br />~ <br />~ <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />JULY 6, 2004 <br />TITLE: <br /> <br />RESOLUTION ESTABLISHING THE <br />APPROPRIATION LIMIT OF THE <br />CITY OF SANTA ANA FOR <br />FY <br /> <br />2O°(2A2 <br />~. <br />- <br /> <br />CITY MANAGER <br /> <br />APPROVED <br />0 As Recommended <br />0 As Amended <br />0 Ordinance on 1st Reading <br />0 Ordinance on 2nd Reading <br />0 Implementing Resolution <br />0 Set Public Hearing For <br /> <br />CONTINUED TO <br /> <br />ÐY <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Adopt a resolution establishing the appropriation limit for the fiscal <br />year 2004-05. <br /> <br />DISCUSSION <br /> <br />8 The State of California Constitution includes provisions which impose a <br />limit ("the Gann Limit") on tax proceeds that may be appropriated for <br />expenditure by a local government in any given fiscal year and requires <br />that cities establish this limit by resolution. Adoption of the subject <br />resolution is necessary for compliance with these provisions for the <br />fiscal year ending June 30, 2005. <br /> <br />As detailed in the exhibits to the subject resolution, the City's spending <br />limitations from "Proceeds of Taxes" is calculated to be $625,402,896 <br />(Exhibit A) for FY 2004-05. This represents the permitted growth rate <br />factor of 18.5908 times the adjusted base year (1978-1979) appropriation <br />limit of $33,640,451. Exhibit B identifies the factors used to determine <br />the allowable increase; Exhibit C categorizes FY 2004-05 anticipated <br />revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit <br />D computes the fiscal year 2004-2005 appropriations subject to this <br />limitation and identifies the difference between the limit and the <br />budgeted appropriation. As demonstrated in Exhibit D, the City's <br />anticipated FY 2004-05 "Proceeds of Taxes" revenue will be $530,905,941 <br />below the allowable limit. <br /> <br />FISCAL IMPACT <br /> <br />8 <br /> <br /> <br />impact associated with this action. <br /> <br />R 0 ma <br />Executive Director <br />Finance & Management <br /> <br />Services Agency <br /> <br />55A-1 <br />