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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 20, 2017 <br />TITLE: <br />RESOLUTION ESTABLISHING THE <br />APPROPRIATION LIMIT OF <br />THE CITY OF SANTA ANA FOR <br />FY 2017-18 (STRATEGIC PLAN NO. 4, 1 D) <br />CITY ANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' 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 2017-18. <br />DISCUSSION <br />The State of California Constitution includes various provisions, which impose a limit ("the GANN <br />Limit") on tax proceeds that may be appropriated for expenditures by a local government in any <br />given 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 />2018. <br />As detailed in the exhibits to the subject resolution, the City's spending limitation from "Proceeds <br />of Taxes" is calculated to be $1,041,257,416 (Exhibit 1) for fiscal year 2017-18. This represents <br />the permitted growth rate factor of 1.0441 times the fiscal year 2016-17 appropriations limit of <br />$997,277,479. <br />Additionally, Exhibit 1 identifies the factors used to determine the allowable increase from the <br />prior year; Exhibit 2 categorizes FY 2017-18 anticipated revenues from "Proceeds of Taxes" and <br />"Non -Proceeds of Taxes"; and Exhibit 3 computes the fiscal year 2017-2018 appropriations <br />subject to this limitation and also identifies the difference between the limit and the budgeted <br />appropriation. As demonstrated in Exhibit 3, the City's anticipated fiscal year 2017-18 <br />appropriation subject to limitation is $185,816,470, which is $855,440,946 below the Gann Limit <br />(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 />55A-1 <br />