HomeMy WebLinkAbout55A - RESO - ESTABLISH APPROPRIATION LIMITSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 18, 2011
TITLE:
RESOLUTION ESTABLISHING THE
APPROPRIATION LIMIT OF
THE CITY OF SANTA ANA FOR
FY 2011-12
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt a resolution establishing the appropriation limit for the fiscal year 2011-12.
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,
2012.
As detailed in the exhibits to the subject resolution, the City's spending limitations from "Proceeds
of Taxes" is calculated to be $799,646,976 (Exhibit A) for FY 2011-12. This represents the
permitted growth rate factor of 23.7704 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 2011-12 anticipated revenues from "Proceeds of Taxes" and "Non-
Proceeds of Taxes"; and Exhibit D computes the fiscal year 2011-2012 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 2011-12 "Proceeds of Taxes" revenue will be
$676,289,202 below the allowable limit.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
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EXHIBIT A
COMPUTATION OF APPROPRIATION LIMIT
FOR FISCAL YEAR ENDING JUNE 30, 2012
Appropriation Limit:
1978-79 Base Year
Permitted Growth Rate
in appropriation (Exhibit B)
Appropriation Limit for the
Fiscal Year Ending June 30, 2012
33,640,451
23.7704
$ 799,646,976
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EXHIBIT B
CALCULATION OF PERMITTED GROWTH RATE IN
APPROPRIATIONS FOR FISCAL YEAR ENDING JUNE 30, 2012
Factor 2010-11:
California CPI: 2.51%
Converted into a Factor 1.0251
Population Growth: 0.70%
Converted into a Factor: 1.0070
Rates of Change: 1.0251x 1.0070 1.0323
Multiplied by 2010-11 Combined Index 23.0266
Combined Index 1979-80 through 2011-2012 23.7704
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EXHIBIT C
SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES
FOR FISCAL YEAR ENDING JUNE 30, 2012
REVENUE
TAXES:
Property Tax
Sales Tax
Hotel Visitors' Tax
Business Tax
Documentary Stamp Tax
Utility Users'Tax
Total Taxes
FROM STATE:
State Motor Vehicle
State Gas Tax
Prop 1 B
State Cost Reimbs
State Grants
AQMD AB 2766
Total State
OTHER GOVERNMENT:
Community Development (CDBG)
Homeowner Prop Tax Subvention
UASI Grant
Housing (Section 8)
WIA
Measure M, Street Grants, Gas Tax Exch
ARRA 2010
Civic Center and Park
Program Income
Other Federal Grants: HOME, HOPWA
Total Other Government
PROCEEDS
OF TAXES
$ 52,908,066 $
37,505,269
6,600,000
10,050,000
506,220
25,090,000
132,659,555
1,290,472
1,290,472
234,611
234,611
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NON-PROCEEDS
OF TAXES
9,550,315
400,000
351,500
4,751,566
476,500
15,529,881
7,100,000
9,257, 092
30,397,605
3,513,205
6,483,170
5,922,960
3,528,278
4,040,000
4,181,230
74,423, 540
TOTALS
$ 52,908,066
37,505,269
6,600,000
10, 050, 000
506,220
25,090,000
132,659, 555
1,290,472
9,550,315
400,000
351,500
4,751,566
476,500
16,820,353
7,100, 000
234,611
9,257, 092
30,397,605
3,513,205
6,483,170
5,922,960
3,528,278
4,040,000
4,181,230
74,658,151
Exhibit C
Continued
REVENUE
LOCALLY RAISED:
Licenses and Permits
Franchise Fees
Development Fees
Fines and Forfeitures
Charges for Services
Parks and Recreations
From Use of Property
Others
Others - Inter-Agency
Total Locally Raised
OTHER MISCELLANEOUS:
Donation
Sale of Junk and Property
Attorney Reimbursements
Expense Reimbursements
Indirect Cost Recovery
From Prior Year Fund Balances
Refuse Program Saving
Refuse Contract Program Surcharge
Interfund Transfers
Total Other Miscellaneous
FROM USE OF MONEY:
Earnings on Investment
TOTALREVENUES
PROCEEDS NON-PROCEEDS
OF TAXES OF TAXES TOTALS
3,562,776 3,562,776
7,493,115 7,493,115
3,550,000 3,550,000
7,682,485 7,682,485
10,445, 367 10,445, 367
522,250 522,250
14,666,190 14,666,190
57,854 57,854
9,257,180 9,257,180
57,237,217 57,237,217
46,502 46,502
8,502 8,502
1,176, 339 1,176, 339
2,437,967 2,437,967
2,382,599 2,382,599
9,998,741 9,998,741
1,239,325 1,239,325
0
20,903,055 20,903,055
0 38,193, 030 38,193, 030
174,186 277,658 451,844
$ 134, 358, 824 $ 185, 661, 326 $ 320, 020,150
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EXHIBIT D
APPROPRIATION SUBJECT TO LIMITATION
FOR FISCAL YEAR ENDING JUNE 30, 2012
Proceeds from taxes
Less: Exclusions:
Capital outlay
Appropriation subject to limitation
Current year limit
Over(under) limit
$ 134,358,824
11,001,050
123,357,774
799,646,976
$ (676,289,202)
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Iss:6/21/11
RESOLUTION NO. 2011-
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
2011-2012
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. 2011-XXX
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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 18, 2011.
H. The Executive Director, Finance and Management Services of the City of
Santa Ana has determined the City's appropriation limit for fiscal year
2011-2012 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 July 1,
2011 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 2011-2012 is hereby found
and determined to be $774,646,976.00.
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
2011.
Miguel A. Pulido
Mayor
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Resolution No. 2011-XXX
Page 2 of 3
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Laura Sheedy
Assistant City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Councilmembers
Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2011-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
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Resolution No. 2011-XXX
Page 3 of 3
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