HomeMy WebLinkAbout55C - APPROPRIATION LIMIT FOR FY 05-06
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REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
JULY 5, 2005
TITLE:
APPROVED
o As Recommended
o As Amended
o Ordinance on 1st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
RESOLUTION ESTABLISHING THE
APPROPRIATION LIMIT OF THE
CITY OF SANTA ANA FOR
FY 2005-06
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CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Adopt a resolution establishing the appropriation limit for the fiscal
year 2005-06
DISCUSSION
The State of California Constitution includes provisions, which impose a
limi t ("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, 2006.
As detailed in the exhibits to the subject resolution, the City's spending
limitations from "Proceeds of Taxes" is calculated to be $665,679,785
(Exhibit A) for FY 2005-06. This represents the permitted growth rate
factor of 19.7899 times the adjusted base year (1978-1978) appropriation
limit of $33,640,451. Exhibit B identifies the factors used to determine
the allowable increase; Exhibit C categorizes FY 2005-06 anticipated
revenues from "Proceeds of Taxes" and "Non-Proceeds of Taxes"; and Exhibit
D computes the fiscal year 2005-2006 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 2005-06 "Proceeds of Taxes" revenue will be $551,939,850
below the allowable limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
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Francisco Gutierrez
Executive Director
Finance & Management Services Agency
55C-1
Appropriation Limit:
1978-79 Base Year
Permitted Growth Rate
in appropriation (Exhibit B)
EXHIBIT A
COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2006
Appropriation Limit for the
Fiscal Year Ending June 30, 2006
55C-2
$
33,640,451
19.7899
$
665,742,325
EXHIBIT B
CALCULATION OF PERMITTED GROWTH RATE IN
APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2006
Factor 2005-06:
California CPI:
Converted into a Factor
Population Growth:
Converted into a Factor:
Rates of Change: 1.0526 x 1.0113
Multiplied by 2004-05 Combined Index
Combined Index 1979-80 through 2005-06
55C-3
5.26%
1.0526
1.13%
1.0113
1 .0645
18.5908
19.7899
EXHIBIT C
SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2006
PROCEEDS NON-PROCEEDS
REVENUE OF TAXES OF TAXES TOTALS
TAXES:
Property Tax $ 40,326,555 $ $ 40,326,555
Sales Tax 43,160,340 43,160,340
Hotel Visitors' Tax 5,875,700 5,875,700
Business Tax 8,588,000 8,588,000
Documentary Stamp Tax 1,234,500 1,234,500
Utility Users'Tax 26,982,520 26,982,520
Total Taxes 126,167,615 126,167,615
FROM STATE:
State Motor Vehicle 1,705,255 1,705,255
State Gas Tax 6,610,415 6,610,415
State Park Bond 2,500,000 2,500,000
State Cost Reimbs 55,000 55,000
State Grants 0
AQMD AB 2766 , TCR AB2928 372,340 372,340
Total State 1,705,255 9,537,755 11,243,010
OTHER GOVERNMENT:
Community Development (CDBG) 8,215,900 8,215,900
Homeowners Prop tax subve 275,335 275,335
Housing (HUD) 29,195,025 29,195,025
WIA 3,461,295 3,461,295
Measure M, Street Grand, Gas Tax Exch 16,941,495 16,941,495
HOPW A 1,342,000 1,342,000
Empowerment Zone 661 ,135 661,135
County of Orange 315,000 315,000
Civic Center and Park 3,317,810 3,317,810
Other Federal Grants 667,750 667,750
Total Other Government 275,335 64,117,410 64,392,745
55C-4
Exhibit C
Continued
PROCEEDS NON-PROCEEDS
REVENUE OF TAXES OF TAXES TOTALS
LOCALL Y RAISED:
Licenses and Permits 5,978,980 5,978,980
Franchise Fees 6,953,670 6,953,670
Development Fees 1,210,800 1,210,800
Fines and Forfeitures 5,048,720 5,048,720
Charges for Services 3,414,200 3,414,200
Parks and Recreations 1,276,995 1,276,995
From Use of Property 11,783,355 11,783,355
Others 3,758,360 3,758,360
Refuse Program Savings 1,239,325 1,239,325
Total Locally Raised 40,664,405 40,664,405
OTHER MISCELLANEOUS:
Sale of Junk and Property 42,650 42,650
Expense Reimbursements 3,892,690 3,892,690
Indirect Cost Recovery 2,799,080 2,799,080
From Prior Year Fund Balances 5,453,800 10,781,445 16,235,245
Interfund Transfers 13,131,055 13,131,055
Total Other Miscellaneous 5,453,800 30,646,920 36,100,720
FROM USE OF MONEY:
Earnings on Investment 3,797,560 146,425 3,943,985
TOTAL REVENUES $ 137,399,565 $ 145,112,915 $ 282,512,480
55C-5
EXHIBIT D
APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2006
Proceeds from taxes
Less: Exclusions:
Capital outlay
Appropriation subject to limitation
Current year limit
Over(under) limit
55C-6
$
137,399,565
23,597,090
$
113,802,4 75
665,742,325
$
(551,939,850)
mjv:6/28/05
RESOLUTION NO. 2005-068
A RESOLUTION OF THE CITY COUNCil OF THE CITY OF
SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT
OF THE CITY OF SANTA ANA FOR FISCAL YEAR
2005-2006
BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF SANTA ANA AS
FOllOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. Article XIIIB of the Constitution of the State of California, adopted by the
voters of the State of California in November 1978, imposes upon State
and local government the obligation to limit each fiscal year's
appropriations to those established in fiscal year 1978-79 as adjusted for
by inflation and population, together with other specified changes required
or permitted.
B. In June of 1990, the voters of the State of California approved Proposition
111 which amended Article XIII B to establish the limit originally calculated
for fiscal year 1986-87 as a new adjustment base and to change the
definition of the cost of living to be either the percentage change in
California per capita personal income from the preceding year or the
percentage change in the local assessment roll from the preceding year
for the jurisdiction due to the addition of local non-residential new
construction.
C. Proposition 111 further modified Article XIII B requirements by making
certain capital outlay, debt service, emergency and court ordered
expenditures not subject to the limit and by allowing expenditures in
excess of one year's limit to be offset by underexpenditures in an
immediately following year.
D. The City of Santa Ana has opted to use as the inflation adjustment factor,
the percentage change in the California per capita personal income from
the preceding year.
E. The City of Santa Ana has opted to use as the population adjustment
factor, the County's percentage change in population from the preceding
year.
Resolution No. 2005-068
Page 1 of 4
55C-7
F. Division 9 of Title I of the Government Code of the State of California
(commencing with section 7900), as enacted by 1980 Statutes, Chapter
1205, effective January 1, 1981, directs the governing body of each local
jurisdiction each year to, by resolution, establish its appropriations limit
and make other necessary determinations for the following fiscal year
pursuant to Article XIIIB of the California Constitution at a regularly
scheduled meeting or noticed special meeting. Fifteen days prior to the
meeting documentation used in the determination of the appropriations
limit and other necessary determinations shall be available to the public.
G. This matter came on before the City Council at its regularly scheduled
meeting of July 5, 2005.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2005-2006 in accordance with the said provisions of the Constitution and
laws of the State of California and the documentation used in said
determination has been available to the public since not later than June
20, 2005 in the office of the Executive Director, Finance & Management
Services.
Section 2. Based upon the above referenced facts and all facts specified in
the accompanying Request for Council Action and its attachments, and each of them,
the appropriation limit of the City of Santa Ana for fiscal year 2005-2006 is hereby found
and determined to be $665,742,325.00.
Section 3. In accordance with Health & Safety Code 9 33445, a community
redevelopment agency may, with the consent of the legislative body, pay all or a part of
the value of the land for and the cost of the installation and construction of any building,
facility, structure, or other improvement that is publicly owned either within or without the
project area upon the legislative body making the following determinations:
(1) The buildings, facilities, structures or other improvements are of benefit to
the project area or the immediate neighborhood in which the project is
located, regardless of whether the improvement is within another project
area;
(2) No other reasonable means of financing the buildings, facilities, structures,
or other improvements are available to the community; and
(3) The payment of funds for the cost of the facilities, structures or other
improvements will assist in the elimination of one of more blighting conditions
inside the project area or provide housing for low- or moderate-income
persons, and is consistent with the implementation plan adopted by the
Agency pursuant to Health & Safety Code 9 33490.
Resolution No. 2005-068
Page 2 of 4
55C-8
The City Council hereby makes these findings and determinations, and consents
for fiscal year 2005-2006 to the Community Redevelopment Agency of the City of Santa
Ana making said payments as it deems warranted.
Section 4. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this
day of
,2005.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Michael Vigliotta
Deputy City Attorney
AYES: Council members
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Council members
Resolution No. 2005-068
Page 3 of 4
55C-9
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2005-068 to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Resolution No. 2005-068
Page 4 of 4
Clerk of the Council
City of Santa Ana
55C-1 0