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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 1, 2014 <br />TITLE: <br />RESOLUTION ESTABLISHING THE <br />APPROPRIATION LIMIT OF <br />THE CITY OF SANTA ANA FOR <br />FY 2014 -15 <br />CITY MFi AGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on I" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution establishing the appropriation limit for the fiscal year 2014 -15. <br />DISCUSSION <br />The State of California Constitution includes provisions, which impose a limit ( "the GANN Limit") <br />on tax proceeds that may be appropriated for expenditures by a local government in any given <br />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 />2015. <br />As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds <br />of Taxes" is calculated to be $893,083,329 (Exhibit A) for FY 2014 -15. This represents the <br />permitted growth rate factor of 26.5479 times the adjusted base year (1978 -1979) appropriation <br />limit of $33,640,451. Exhibit B identifies the factors used to determine the allowable increase; <br />Exhibit C categorizes FY 2014 -15 anticipated revenues from "Proceeds of Taxes" and "Non - <br />Proceeds of Taxes "; and Exhibit D computes the fiscal year 2014 -2015 appropriations subject to <br />this limitation and identifies the difference between the limit and the budgeted appropriation. As <br />demonstrated in Exhibit D, the City's anticipated FY 2014 -15 "Proceeds of Taxes" revenue will be <br />$751,138,627 below the allowable limit. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />Exhibits: A. Computation of Appropriation Limit <br />B. Calculation of Permitted Growth Rate <br />C. Schedule to Categorize Anticipate Revenues <br />D. Appropriation Subject to Limitation <br />Resolution <br />55A -1 <br />