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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 7, 2015 <br />TITLE: <br />RESOLUTION ESTABLISHING THE <br />APPROPRIATION LIMIT OF <br />THE CITY OF SANTA ANA FOR FY 2015 -16 <br />{STRATEGIC PLAN NO. 4, 1D} <br />CITY <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl 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 2015 -16. <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 />2016. <br />As detailed in the exhibits to the subject resolution, the City's spending limitation from "Proceeds <br />of Taxes" is calculated to be $937,202,781 (Exhibit A) for FY 2015 -16. This represents the <br />permitted growth rate factor of 27.8594 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 2015 -16 anticipated revenues from "Proceeds of Taxes" and "Non - <br />Proceeds of Taxes "; and Exhibit D computes the fiscal year 2015 -2016 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 2015 -16 "Proceeds of Taxes" revenue will be <br />$782,969,710 below the allowable limit. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal # 4 City Financial Stability, Objective # 1 <br />(maintain a stable, efficient and transparent financial environment), Strategy D (develop a fiscal <br />health analysis tool that informs a department of its financial position in order to assist in its <br />decision making process). <br />55D -1 <br />