HomeMy WebLinkAbout55B - APPROPRIATION LIMIT OF COSA FY 10/11 REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
JULY 6, 2010
TITLE: APPROVED
? As Recommended
RESOLUTION ESTABLISHING THE ? As Amended
APPROPRIATION LIMIT OF ? Ordinance on 1S` Reading
? Ordinance on 2"d Reading
THE CITY OF SANTA ANA FOR ? Implementing Resolution
FY 2010-11 ? Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Adopt a resolution establishing the appropriation limit for the fiscal year 2010-11
DISCUSSION
The State of California Constitution includes 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 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,
2011.
As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds
of Taxes" is calculated to be $774,625,209 (Exhibit A) for FY 2010-11. This represents the
permitted growth rate factor of 23.0266 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 2010-11 anticipated revenues from "Proceeds of Taxes" and "Non-
Proceeds of Taxes"; and Exhibit D computes the fiscal year 2010-2011 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 2010-11 "Proceeds of Taxes" revenue will be
$654,966,839 below the allowable limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Francisco Gutierrez
Executive Director
Finance and Management Services Agenc~
55B-1
Iss:6/16/10
RESOLUTION NO. 2010-
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
2010-2011
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
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 jurisdiction's local assessment roll from the
preceding year 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 under expenditures 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. 2010-XXX
Page 1 of 3
55B-2
F. Division 9 of Title I of the Government Code of the State of California
(commencing with section 7900), directs the governing body of each local
jurisdiction to annually establish its appropriations limit and make other
necessary determinations for the following fiscal year pursuant to Article
XIIIB of the California Constitution, by resolution, 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 was considered by the City Council at its regularly scheduled
meeting of July 5, 2010.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2010-2011 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
18, 2010 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 2010-2011 is hereby found
and determined to be $774,625,209.00.
Section 3. 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 , 2010.
Miguel A. Pulido
Mayor
Resolution No. 2010-XXX
55B-3 Page 2 of 3
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Laura Sheedy
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2010-XXX to be the original resolution adopted by the City Council of the
City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2010-XXX
Page 3 of 3
55B-4