55B - RESO - APPROPRIATION LIMIT FY 2009-10

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REQUEST 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