55B - RESO - AA LIMIT FY 16-17 - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 5, 2016 TITLE; RESOLUTION ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FY 2016 -17 {STRATEGIC PLAN NO. 4, 1D} RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1e0 Reading ❑ Ordinance on 2 "d Reading ❑ Implementing Resolutlon ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution establishing the appropriation limit for the fiscal year 2016 -17. DISCUSSION The State of California Constitution includes various 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 cities to establish this limit by resolution. Adoption of the subject resolution is necessary for compliance with these provisions for the fiscal year ending June 30, 2017. As detailed in the exhibits to the subject resolution, the City's spending limitation from "Proceeds of Taxes" is calculated to be $997,277,479 (Exhibit 1) for fiscal year 2016 -17. This represents the permitted growth rate factor of 1.0641 times the fiscal year 2015 -16 appropriations limit of $937,202,781. Additionally, Exhibit 1 identifies the factors used to determine the allowable increase from the prior year; Exhibit 2 categorizes Fiscal Year (FY) 2016 -17 anticipated revenues from "Proceeds of Taxes" and "Non- Proceeds of Taxes "; and Exhibit 3 computes the fiscal year 2016 -17 appropriations subject to this limitation and also identifies the difference between the limit and the budgeted appropriation. As demonstrated in Exhibit 3, the City's anticipated fiscal year 2016 -17 appropriation subject to limitation is $164,536,547, which is $832,740,932 below the Gann Limit (allowable limit). 5513-1