55F - RESO - ESTABLISH APPROPRIATION LIMIT

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2012 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ? As Recommended RESOLUTION ESTABLISHING THE ? As Amended APPROPRIATION LIMIT OF ? Ordinance on 151 Reading ? Ordinance on 2"d Reading THE CITY OF SANTA ANA FOR ? Implementing Resolution FY 2012-13 ? Set Public Hearing For_ CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Adopt a resolution establishing the appropriation limit for the fiscal year 2012-13. 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, 2013. As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds of Taxes" is calculated to be $837,149,351 (Exhibit A) for FY 2012-13. This represents the permitted growth rate factor of 24.8852 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 2012-13 anticipated revenues from "Proceeds of Taxes" and "Non- Proceeds of Taxes"; and Exhibit D computes the fiscal year 2012-2013 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 2012-13 "Proceeds of Taxes" revenue will be $711,517,168 below the allowable limit. FISCAL IMPACT There is no fiscal impact associated with this action. "A NrAl`x\ ?, (° -mil a . V A Q Francisco Gutierrez Executive Director Finance and Management Services Agency,l, 55F-1