55B - APPROPRIATION LIMIT OF COSA FY 10/11

Home Browse Search

REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JULY 6, 2010 TITLE: APPROVED ? As Recommended RESOLUTION ESTABLISHING THE ? As Amended APPROPRIATION LIMIT OF ? Ordinance on 1S` Reading ? Ordinance on 2"d Reading THE CITY OF SANTA ANA FOR ? Implementing Resolution FY 2010-11 ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution establishing the appropriation limit for the fiscal year 2010-11 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, 2011. As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds of Taxes" is calculated to be $774,625,209 (Exhibit A) for FY 2010-11. This represents the permitted growth rate factor of 23.0266 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 2010-11 anticipated revenues from "Proceeds of Taxes" and "Non- Proceeds of Taxes"; and Exhibit D computes the fiscal year 2010-2011 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 2010-11 "Proceeds of Taxes" revenue will be $654,966,839 below the allowable limit. FISCAL IMPACT There is no fiscal impact associated with this action. Francisco Gutierrez Executive Director Finance and Management Services Agenc~ 55B-1