HomeMy WebLinkAboutFin GANN Appropriation Limit 2010-2011Agenda Item No: 10
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W,` Meeting Date: July 6, 2010
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
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Prepared by: Cindy Mosser
Finance Director
City Manager Approval: A, _
SUBJECT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal
Year 2009-2010; b) Approving Fiscal Year 2010-2011 GANN Appropriation Limit.
RECOMMENDATION: Adopt Resolutions appropriating unappropriated
Revenues and approving 2010-2011 GANN
Appropriation Limit.
BACKGROUND:
On November 6, 1979, California voters passed Proposition 4. Statutes clarifying
certain provisions of the Proposition are now codified in article XIIIB of the California
Constitution. This Article is commonly known as the "GANN Initiative". The Initiative
established constitutional spending limits allowable for California governmental
agencies based on the Consumer Price Index and population growth. Concurrent with
Proposition 4, the Revenue and Taxation Code, Section 7910, requires each local
governmental unit to establish its appropriations limit by the beginning of each fiscal
year.
Due to the GANN's constraint on State and local governments to respond effectively to
the demands of rapid growth around California, a legislative -business -labor coalition
drafted and supported Proposition 111, which was adopted June 5, 1990. Proposition
111 makes crucial adjustments to the GANN by allowing it the flexibility to operate in a
growing economy while retaining its purpose in placing a limit on government spending.
The following are the changes Proposition 111 made to the GANN Initiative.
Prior law required spending limits to be tied to the Consumer Price Index or California
Per Capita Personal Income growth, whichever was lower. The new provisions allow
an agency to select the California Per Capita Personal Income or non residential
property assessed valuation growth, whichever is hiaher.
File No.: g'
Council Meeting:-�6�2ai0
Disposition: RESV1-U4t0AJ5
FOR CITY CLERK ONLY
l�-9 9� / 12996
Cities may now choose to use the percentage rate of change in population within the
City or county, whichever is hiqher.
ANALYSIS:
The Appropriation Limit for the current year (FY 2009-2010) is based on the prior year
Appropriation Limit adjusted for the change in assessment roll for non residential
construction times the change in the population for Marin County.
For fiscal year 2010-2011, we are using a 39.62 percent increase in the change in
assessment roll for nonresidential construction from 2008 to 2009 (this figure is
provided by the County of Marin's Auditor -Controllers Property Tax Division). This large
percentage increase is calculated as a percentage of the assessment roll change and
includes Northgate Mall and the Corporate Center. For the change in population, we
are using 0.93 percent — representing the change in population for Marin County, which
is higher than the City's figure of 0.79 percent for the period of January 2009 to January
2010 (provided by the State of California Department of Finance).
Based on our calculation, the 2010-2011 Appropriation Limit is $93,877,674 (Exhibit A).
A Resolution is attached, which authorizes the new Appropriation Limit for next year.
The actual budget subject to the limitation excludes self-supporting funds, capital
improvement funds, capital outlay grant funds, and specific exclusions such as the Gas
Tax Fund. The Fiscal Year 2010-2011 appropriations subject to the Gann Limit is
$48,469,424 (Exhibit B). Therefore, the City could appropriate an additional
$45,408,250 before the legal limit would be reached.
Also, as part of this report, we must adopt a Resolution under Proposition 4, to roll over
excess revenues in fiscal year 2009-2010 to be included in the Gann limit calculation.
A separate Resolution is attached for this action.
FISCAL IMPACT:
By approving the Resolutions, the City's Appropriation Limit for fiscal year is increased
to $93,877,675 for fiscal year 2010-2011.
OPTIONS:
The City Council should adopt the report as presented in order to satisfy Article X11113 of
the California Constitution and Proposition 4.
ACTION REQUIRED:
The Council should accept this report and adopt the Resolutions as presented.
ATTACHMENTS
W:Wlanagement Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2010\City\Gann Limit 10-11.doc
RESOLUTION NO. 12995
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL APPROPRIATING UNAPPROPRIATED
REVENUES FOR FISCAL YEAR 2009-2010
WHEREAS, the City of San Rafael may have unappropriated revenues in our operating
funds as of June 30, 2010; and
WHEREAS, the City will require the use of these funds in the future; and
WHEREAS, the City Council wishes to appropriate these revenues for future use.
NOW, THEREFORE, BE IT RESOLVED by the City Council of San Rafael that the 2009-
2010 Budget is amended to appropriate all year-end unappropriated 2009-2010 revenues into a
reserve for working capital.
BE IT FURTHER RESOLVED that all previously appropriated year-end revenues and
reserves are classified as working capital reserves.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of said City held on Tuesday, the 6th day of July, 2010, by the following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Brockbank, Connolly, Levine & Mayor Boro
None
Heller
�LS!-�d� G •�d'�u
ESTHER C. BEIRNE, City Clerk
WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\Appropriating Revenue 09-10.doc
RESOLUTION NO. 12996
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING FISCAL YEAR 2010-2011 GANN
APPROPRIATIONS LIMIT AT $93,877,674
WHEREAS, Proposition 4, which was voted upon by the voters of the State of
California on November 6, 1979, places various limitations on the fiscal powers of state
and local governments; and
WHEREAS, Senate Bill 1352, which implements Proposition 4, requires that the
governing body of each local jurisdiction shall establish its Appropriations Limit at a
regularly scheduled meeting or noticed special meeting; and
WHEREAS, documentation used in the determination of the Appropriations Limit
has been available in the Finance Department as provided by Senate Bill 1352; and
WHEREAS, the City has elected to use the percent change in the population of
Marin County from January 2009 to January 2010, and the percent change in the
assessment roll for nonresidential construction, as provided by Proposition 111.
NOW, THEREFORE, BE IT RESOLVED that the City Council of San Rafael,
pursuant to the formula set forth in Senate Bill 1352, does hereby establish the
Appropriations Limit for fiscal year 2010-2011 for the City of San Rafael at $93,877,674,
as documented in Exhibit A, attached hereto and incorporated herein by reference as
though fully set forth.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
on the City Council of said City held on Tuesday, the 6th day of July, 2010, by the
following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS
Brockbank, Connolly, Levine & Mayor Boro
None
Heller
1-5SY �
ESTHER C. BEIRNE, City Clerk
WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\City\Gann Approp Limit 10-11
Resolution.doc
RESOLUTION NO. 12996
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING FISCAL YEAR 2010-2011 GANN
APPROPRIATIONS LIMIT AT $93,877,674
WHEREAS, Proposition 4, which was voted upon by the voters of the State of
California on November 6, 1979, places various limitations on the fiscal powers of state
and local governments; and
WHEREAS, Senate Bill 1352, which implements Proposition 4, requires that the
governing body of each local jurisdiction shall establish its Appropriations Limit at a
regularly scheduled meeting or noticed special meeting; and
WHEREAS, documentation used in the determination of the Appropriations Limit
has been available in the Finance Department as provided by Senate Bill 1352; and
WHEREAS, the City has elected to use the percent change in the population of
Marin County from January 2009 to January 2010, and the percent change in the
assessment roll for nonresidential construction, as provided by Proposition 111.
NOW, THEREFORE, BE IT RESOLVED that the City Council of San Rafael,
pursuant to the formula set forth in Senate Bill 1352, does hereby establish the
Appropriations Limit for fiscal year 2010-2011 for the City of San Rafael at $93,877,674,
as documented in Exhibit A, attached hereto and incorporated herein by reference as
though fully set forth.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
on the City Council of said City held on Tuesday, the 6th day of July, 2010, by the
following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS
Brockbank, Connolly, Levine & Mayor Boro
None
Heller
ESTHER C. BEIRNE, City Clerk
WA (Management Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\City\Gann Approp Limit 10-11
Resolution.doc
EXHIBIT A
GANN LIMITATION CALCULATION
Fiscal Year 2010-2011
= Value selected for Factor calculation
*Includes increase for Paramedic Tax Revenue Generated by Measure P
GANN Limit Calculations
$100,000,000 -
$90,000,000 - ------ --- -----
$80,000,000 -----
$70,000,000
$60,000,000
$50,000,000 - - - - -
$40,000,000
$30,000,000
$20,000,000 - - -
$10,000,000 - --
$-
00, "'\°oo°\o, ,\°tio`�°30` 0�,o`'\°�oo`JZ, �\°� o41 Cg,�o�4"
O Current Year Limitation 0 Subject to Gann Limit
(A)
(B)
Fiscal
Cost of Living
Change
in Population
Factor
Current Year
Subject to
Year
Change in
Limitation
Gann Limit
Assessment
California
Roll for
Change in
Change in
Per Capita
Nonresidential
Population for
Population for
Personal Income Or
Construction
San Rafael
Or Marin Countv
(Highest B X
(Source: State)
(Source: County)
(Source: State)
(Source: State)
Highest A)
94/95
$
24,635,128
95/96
4.72
0.60
1.22
1.060000
$
26,113,235
96/97
4.67
5.50
1.37
1.43
1.070000
$
27,941,557
97/98
4.67
5.40
2.17
1.64
1.080000
$
30,176,882
98/99
4.15
6.80
1.42
1.56
1.080000
$
32,591,032
99/00
4.53
6.26
1.47
1.62
1.079800
$
35,192,257
00/01
4.91
9.27
1.50
1.82
1.112600
$
39,154,905
01/02
7.82
6.67
0.53
0.72
1.086000
$
42,522,227
02/03
-1.27
5.15
0.69
0.81
1.060000
$
45,073,561
03/04
2.31
2.43
1.45
0.77
1.039152
$
46,838,297
04/05
3.28
2.06
-0.16
2.53
1.058900
$
49,597,072
$
39,274,542
05/06
5.26
1.59
0.07
0.33
1.056100
$
52,379,468
$
43,215,534
06/07
3.96
0.57
0.49
0.74
1.047300
$
54,857,017
$
47,167,477
07/08*
4.42
2.09
0.97
0.97
1.054300
$
58,867,753
$
53,279,474
08/09
4.29
2.63
0.68
0.93
1.052600
$
61,964,197
$
54,394,753
09/10
0.62
6.65
0.57
0.81
1.075100
$
66,617,708
$
51,368,817
10/11
-2.54
39.62
0.79
0.93
1.409200
$
93,877,674
$
48,469,424
= Value selected for Factor calculation
*Includes increase for Paramedic Tax Revenue Generated by Measure P
GANN Limit Calculations
$100,000,000 -
$90,000,000 - ------ --- -----
$80,000,000 -----
$70,000,000
$60,000,000
$50,000,000 - - - - -
$40,000,000
$30,000,000
$20,000,000 - - -
$10,000,000 - --
$-
00, "'\°oo°\o, ,\°tio`�°30` 0�,o`'\°�oo`JZ, �\°� o41 Cg,�o�4"
O Current Year Limitation 0 Subject to Gann Limit
O I:II-9t77t]
City of San Rafael
Appropriation Limit Analysis
FY 2010-11
Total Appropriations
$ 63,090,494 $
Appropriation Limit
360,869 $ 14,260,201 $ 48,469,424
$ 93,877,674
Available Room Under Appropriation Limit
Excluded funds include self-supporting funds, capital improvement funds, capital outlay grant funds
and specific exclusions such as the Gas Tax Fund.
$ 45,408,250
W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\09-1 1 \09-1 1 Twelve
Month\Gann Limit Growth 10-11.xls;Sub to Limit
2010-2011
2010-2011
Less
Less
Appropriations
Projected
Exempt
Non -Tax
Subject to
Budget
Expenditures
Revenues
Gann Limit
Total Appropriations
Fund #
General Fund
001 $
51,548,600
$ 287,559 $
8,788,171
$ 42,472,870
Abandoned Vehicle Fund
200
146,649
1,230
130,800
14,619
Stormwater Fund
205
1,436,300
3,270
811,210
621,820
Emergency Medical Services
210
5,552,800
28,190
2,100,000
3,424,610
Library Fund
214
363,314
10,419
44,400
308,495
Library Special Assessment
215
649,600
-
-
649,600
Street Cleaning Fund
220
-
-
-
-
Recreation Revolving
222
3,373,371
30,201
2,382,620
960,550
Street Maintenance Fund
225
-
-
-
-
Police Youth Services
230
6,900
-
3,000
3,900
Open Space Fund
405
12,960
-
-
12,960
Total Appropriations
$ 63,090,494 $
Appropriation Limit
360,869 $ 14,260,201 $ 48,469,424
$ 93,877,674
Available Room Under Appropriation Limit
Excluded funds include self-supporting funds, capital improvement funds, capital outlay grant funds
and specific exclusions such as the Gas Tax Fund.
$ 45,408,250
W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\09-1 1 \09-1 1 Twelve
Month\Gann Limit Growth 10-11.xls;Sub to Limit
CITY OF SAN RAFAEL
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
SRRA / SRCC AGENDA ITEM NO. 10
FROM
DEPARTMENT
DATE:
Cindy Mosser
Finance
June 29, 2010
DATE OF MEETING: July 6, 2010
TITLE OF DOCUMENT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal Year 2009-
2010; b) Approving Fiscal Year 2010-2011 GANN Appropriation Limit.
Vkala�-
Dept ment Head (signature)
JUS! 3 0 2010
CIT/ ATTORNEY
*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM:
AG ND 1TEM:
City M'a ager (signature) �j City Attorney (signature)
NOT APPROVED
REMARKS: